Last week I was able to hold so many urges of entering grains bull puts as prices continuing coming down. I also started to buy puts to hedge my underwater bull puts positions. Although it' bit later and lack of specific risk/reward calculation but they are helping off set the losses and release some margins. I need to refine the ratio of hedging with my directional options. Should it be 1:1, 1:2 or 1:3, what are the dollar amount ration?
My shortcoming is still lack of alternative plans. I tend to plan my actions on my certain expectations. Do have 2-3 hypotheses and related solutions. A good example is preparing for the USDA report. I had add on and exit price range with a pop expectation. But I didn't have a plan for any other scenario, such as reduce positions at a loss before report in case of straight against me. Because of it I am sitting on an additional 22% loss. It's a hefty penalty for fear of loss. I have to overcome the unwilling and fear of loss, otherwise I won't be able to make it in this business. I will add more conditions for add on in my underwater rescue strategy or even completely remove Add On as part of the strategy. It would be better to take stop at 1.5-2X loss and leg up (down) to recover partial losses.
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