How do you check your emotions when trading?

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The markets will always do what the market wants to do.

If you can’t control it, don’t try to.

So how do you adjust?

Don’t panic sell.

When your holdings go down, emotions kick in. If they keep going down. You might panic sell and eat the L.

Even worse, the stock might reverse and now to re enter you have to buy it back at a higher price.

Learn support and resistance.

When the stock is going down, you can have more confidence in your decision when you know the support lines.

If it catches on support, we can see a recovery. If it breaks. You need to know the next support.

This allows for calculated moves.

If you’re holding a stock, I’m assuming you believe in the company.

The second move is to dollar cost average.

Wait for the stock to reach a support that it will hold and buy more shares.

This brings your average cost per share down and allows for more money on the way up.

Hedge against red markets.

Options are a fantastic hedge.

Long term positions down? Market falling?

Play Put Options to profit on the way down and then calls on the way back up.

Or simply find a green stock and call it. This allows for profit in red markets

If all of this is foreign to you, come join us at MMB. We teach. We trade. We make money regardless of market conditions