That is a hard question, and honestly I don't have a really good answer. Take SNDK today: this was my fourth short attempt of the day. I took the last one mainly because QQQ was bouncing into an EMA and the unfilled gap level. Looking back, my first two entries were not really the ideal ones. I don't have a rule for a maximum number of re- entries, like three or five. An easier way may be to treat every single trade independently: forget about the losses you have taken and focus on the one you are looking at right now. Is it valid? If it is a pullback, are you shorting at a resistance level, or is the stock already breaking out? If it is really late in the day, I'm probably not going to do it, because the gap risk may be too high. Generally you won't get that many re-entries in a single day, unless the market is really choppy and a five- or fifteen-minute breakdown fails and stops you out a few times in a row. If you really want to prevent overtrading through too many re-entries, I think the best way is to focus on the daily levels: zoom out, and only look at the daily, maybe sometimes the hourly, like a gap level. If you only trade the daily levels, you won't get that many re-entries in a single day. This SNDK trade is maybe a negative example: I got too aggressive in the early morning, was stopped out twice, and then took two more attempts to nail the short.
Source: EP108 | 23 Oct 2026