I recommend that you use this product:
http://www.amazon.com/s/ref=nb_ss_gw?ur ... ik&x=0&y=0
I've seen people use it and its incredible how well it hides receding hair lines and balding. Your hair will look thick and full and there is no way to tell that you've used something, even if a bitch moves her fingers through your hair. It'll stay on for days even after sleeping, sweating, wind, brushing you hair, etc.
I think you will gain a lot more confidence if you're not concerned about your hair all the time, so try it out. And with that said you can grow your hair out as long as you want or cut it as short as you want, it just depends on your style.