March 31 This is why I shorted GMAN MBI HZNP DANG and ALJ

GMAN

Daily overextended , opened with gap up directly into daily swing high resistance.

Great earnings last week, many longs are chasing  not to miss the move up

 ( it may get to $100 next week?!?)  

I call it The Bread And Butter Set Up

                                                                 GMAN

Second short GMAN covered with a loss

MBI  the same reason I shorted GMAN is the reason for shorting MBI. The indecision  5 min candles ( called doggy) give more clue besides the overextended run into the solid daily resistance. Longs from sub $9.00 will take profits eventually. When is the best time for somebody to take profit after nice % gains in just few days? When would you take your profit if you ware you long?

MBI the short entry 

The nicest short set ups are HERE

HZNP  my real time thoughts:
WIll I buy long here 26.20? No ..No chase for me. Who went long 26.00 may be selling for a scalp. 5min wicky candles in this area , Lot of indecision. Daily overextended, 26.20 intra day resistance. Had I not have 2 winning trades this AM , I'd probably not taken this short. But my friend did , so let me  make him feel comfortable ?!?.Spiking and about to take a loss.Limited risk is #1 rule 

HZNP

HZNP glad I stayed focused

HZNP  the re-short and partial cover short from very top. A mover stock , will rarely chop me up , it may stop me , but not chop me too many times .So I stick with it, I keep it on watch,  till I nail it . Several monitors are great investment. FOCUS!

DANG 

Does this look familiar? Why bother longing? Because crowd will like me more?
Read all my blog and learn everything you need to know about day trading stocks free !

ALJ fake out break out 
ALJ the tweet to get ready click HERE

ALJ fake out break out

ALJ the short 

ALJ the same short  set up like the other 4 above .

I like to stay green but not at any price !!
I take my losses, It is ok to have a red day like it happened to me last 2 days.
One green day like today makes it all back and some more.
Salute!

March 30 Valuable lesson on risk management HZNP ZIOP

Two tickers , and three losing trades, a red day. I followed the rules for risk management and do not feel regretful like I did on Friday.
HZNP
Looked like it was consolidating above over under 25.00 took a long got stopped. Gave a higher low , it was very quick trade. No regrets for dong something out of line.

ZIOP

ZIOP

I was too slow to short from the open, since opened into good resistance level ( daily) . I did wanted to see it go higher to short but was not humble and quick enough to see the off the open short.

I did wait patiently to drop near 12.00 which was previous day high ( PDH), and entered long 12.05 with fishing order at the wash. Got stopped out 11.90 which was violation of PDH.  I was looking for next long entry but only with confirmation for bottom. Bottom was created at 11.68  took a long at 11.78 and added 11.85 for average 11.82. It did  not break the 12.00 as I expected , was trading choppy over under 11.85  and took acceptable  small loss of 4 cents at 11.78. Very limited risk. 

ZIOP

My friends were laughing at me telling me I'm trying to catch a falling knife, something that I preach NOT TO DO, My response is  as long as have a plan and know what I stand to lose I am OK with it.

In a way they are right , and they did couple nice trades which I call them MY BREAD AND BUTTER here past trades.

These were the two trades. GENE and GOGO

GENE shorting a gapper

GOGO same thing 

Trading is not just one day battle.

Limit the risk and stay in business.

March 27 OLN OREX RAD How to trade by knowing the Price Action supersedes the news !

Today I decided to dynamically update my trading journal in real time as I am trading, instead of  updating it after the EOD.  Simply because I'd  like to review my own thoughts later on, from a bit different angle which may improve my trading. It  is like being my own mentor or shrink or boss whom I have to report my work. The italic text is written after the EOD.
OLN 
Decline from gap up open, approached daily  swing high 31.50, will look for higher lows , pull backs, for low risk entry. 31.00 should act as support.
Shifting different time frames 1 min 3 min, 5min

                                                                    OLN the plan
OLN did create a pull back opportunity , made double bottom, and took off for a whole $1.00 move straight up after the double bottom. I didn't take the trade because I was just too much mentally involved with the OREX LONG trade that gave me hard time which was all my fault.

OREX the plan 
Premarket trading at just above major major daily resistance line 7.80.
I am long already 7.80. The news is great. Approval on one of OREX's products in Europe. I chose the stock from pre market scanner but my friend told me the news.
Risk is that daily resistance support line 7.70 /7.80 area .
Anticipation into nice bullish day  if 7.70 holds.
May take some loss if dropping at open , depends how it opens , but re-entry is my focus
The solid lines on daily chart  is today pre-market trading range.

                                                                      OREX long 7.80
I got stopped out soon after the open.
But I  re entered long again at a lower level. Now wait a minute! I said the bullish bias will be only above the daily swing high 7.70. Why did I re-enter long at lower price ? No price action confirmation. Did I try to catch a bounce? A falling knife? Since I started to write this blog I've never done this type of trade. Aaaaah it was the "good news" that made me think this must bounce right!!! I got stopped again. Second loss in a row today. Emotions!!! But I tried to stay calm. I told myself : calm down , you  have no position , analyze  the entire situation like you just set at the desk and you are seeing this stock for the first time today.. So I took few deep breaths and looked over the entire picture . I saw support area in 1 hr chart at 7.50 area. But I told myself: I will not re-enter unless I see some price confirmation first. No catching faling knife again. It is trading on big volume today, I know it will move somewhere , it will give a good entry if I'm patient. 

The first higher high for the day ! will this low be a higher low?

And yes it was a higher low. Now I have something!

Making a wicky 5 min candles , is sign buyers are stepping in below 7.50. and may not let it go  below apparently. That is the reasonable expectation as result of the most current price action. I have to admit I'm little stubborn here because of the good news. But I do have higher high confirmation , the ascending trend lines , higher lows,  several 5 min doggy candles at over under 7.50 support resistance level. Now odds are better then catching a falling knife!!!

As you can see the third entry was the one that was confirmed with higher highs and higher lows. My entry at 7.50 was twice the size. Risk reward was 1:3 But what happened next. How far up did OREX go?
Did I take the profit the market gave me? 
Well it went above 7.70 and I did not sell!!
And what is 7.70? 
It is the main swing resistance on which I was planning my long trade pre market, at that time support. Knowing that 7.70 support is now a resistance, knowing that I was already up 1:3 risk reward reached, and having the double the original size, I still did not take profit. What was  thinking? Home run for sure. Why? THE GOOD NEWS implanted in my mind from the pre market. And ths is how it went further :

OREX intraday bullish confirmation I am adding to long only on a winner never on a loser.

I added some more on this pullback 7.63 which it was not a  bad idea but only  IF I HAD ALREADY TAKEN SOME PROFIT  at 7.70 or above ! Sure enough went below 7.60 and got stopped on entire position and ended the day red. 
Why I did this? 
Because of THE GOOD NEWS. It was just implanted in my mind the belief that this OREX must close above 7.80  today. Well,  it doesn't have to! Maybe will be good trade in the next few days, like the RAD long trade today that I did not take  and  had it on watch from couple days ago.
    See RAD post here 
I haven't done this mistake in a long time , but today it just happened. 
The implications are multiple:
Not only I have lost on the trade , but I was impaired to take action on other great set ups all day today such as the above mentioned OLN, RAD and many other great trades that I had in plan, that I was fully aware I could take them, that were right in front of my nose. Looking for a home rum on a GOOD NEWS is not a smart thing a trader can do.

And this is why I spend time writing about it. So I will not repeat it again. And yes I will read it over again from time to time just to remind myself that no matter how disciplined I am , I may always be wrong and make mistakes. Avoid them as much as you can.

To conclude and to note to myself: 
It is OK to know , and to be aware of the news, but FIRST FOLLOW THE PRICE ACTION, have a confirmation for the trend I expect to be as result of the news, but do not take action till  you see confirmation. Do not go on yellow light. Go on the GREEN LIGHT!!! 

How I trade sudden spikes SGYP , FIVE, OTIV, CNAT

SGYP long 4.07 click here 

I spotted SGYP after a spike on some high volume, on news that might be bought out.
I used to chase the spikes and many times I'd get lucky, but on long run my acct was shrinking.
$4.05 was early AM high. that was broken on the news, which became support after the spike. I WAITED TO RETRACE , to pull back, I did not chase it like i the past. Great entry 4.07, sold half at 4.20, broke even on the other half.
Second re-entry was 4.12 in mid day lul at no volume, during  lunch hour. Size smaller then the original. Stopped out 4.08.

SGYP first long 4.07

                                                     SGYP the two trades
FIVE
Was gapper runner, entered on ABCD, 5 min candle confirmation was not there , could have cut my loss much smaller then the original planned 50  cents to make $1.00, but I did not .
Note:
Lunch hour low volume to be avoided
Look for better confirmation on 5 Min candle to stay or te exit the trade .

FIVE long  36.00

                                        FIVE stopped 35.50 not always ABCD s work

OTIV the plan click here  
I did not take this short because my friend was telling me to wait for confirmation by Ichimoku Cloud and some other indicators. Again: if more  indicators can guarantee me the future  with100% accuracy I will use them. But all I use is price action, and volume. KISS.
I hope this fellow trader (click here) learned valuable lesson of how bad it is to chase a overextended ticker and adding to a loser ( click here)  if under water. I lost a tons of money in the past doing the same .Just want to save few newbies accounts  from being blown away on the most common mistake made by new traders.

OTIV the plan to short

OTIV the short I did not take 

It is extremely important to see the daily picture ( left) on parabolically overextended ticker. The more vertical it goes up, LESS you want to chase it !!

CNAT was nice risk reward long trade, 1:3 great scalp , looking at the big picture I saw:

• Gaper dropping to major daily support 6.80 ( I missed  the short from major daily resistance)
• Higher lows of the the 6.80 bottom
• Pull back into intraday brake out level 7.11, and great entry low risk 1:3 RR

CNAT the scalp

Note to myself :
Lunch hour low volume to be avoided
Look for better confirmation on 5 Min candle to stay or to exit the trade .

Hope this may help somebody
Salute and stay green and disciplined

RAD the winner , NETE the loser flat day, VBLT observation

First my emotions: Argued with my friend about longing or shorting the $VBLT. It was a text book long, but he was so inclined to short it prematurely. So I missed to go long, but more importantly he saved himself from shorting it too early.

 RAD
Rad was well planned from few days ago,
I shorted it last week for scalp. on the overextended run , and then consolidated in form of flag for few days under major daily resistance 8.30, giving good entry break out for long 8.28 right below the daily resistance. I exited at EOD with small gain, but I still think this is great swing trade long, since SPY ended totally red for today and RAD closed relatively strong.

RAD  long  8.28

RAD closed 8.34

SPY March 25, 2015

NETE
broke out of daily consolidation, I saw a big volume, and calculated if vol comes in with such pace it may make nice up move. But it did not. However having a good support on daily gave me confidence to stay in it all day in anticipation more volume to arrive. But it didin't. Good thing is even with the market down-trending all day , a well chosen stock  with good support is quite relaxing to be in and to wait. Closing above the daily channel instead if coming back down into the daily channel like it did on March 12, makes me believe this can be a good swing explosive long trade next few days.

NETE long 1.29

NETE taking the loss

VBLT this is how it looked for the day ( I save those plays for future reference )

The reason why I would not short it early in the morning ( pacific time)

It was after break out from three day tight consolidation. Those consolidations are creating a floor. It is very hard to short a stock when is so close to the floor. How far down it may go? How far is the floor? When shorting  I have to have viable reason why I am shorting. Just because the company is "pig" is not a good reason to short. Longs were accumulating for 3 days. Broke on much higher vol above $6.00. Short?Just because the fundamentals are "pig" ? I don't think so. So much for the fundamentals. I rest my case. Price action is what I look at. What is price action? Reaction of the movement in reference of surrounding price. Can anybody defined it better? I'm not too good with English as my second language. Leave a comment . Write up a definition  for price action , anybody?

If this helps somebody feel free to let me know. Leave a comment if you like. It helps me so I hope it helps others.

Stay green !!

Salute!

Three trades two winners CLF YNDX one loser JMEI

I will start with the loser as I see the losers more significant then the winners.
JMEI
I had it on watch for a long, but needed to see a nice pull back to give me low risk entry. It is very hard for me to see a great ticker that is up-trending, to chase it long , just to see it pulls back and to take a loss on it. So I anticipated pull back from the lower highs today, from 17.00 rounded number, which I considered as overextended from the 14.00  break out few days ago.
No major daily resistance looking on the left on daily chart. If it was 18.00 may would have been better for short scalp. Anyways  I think I did not break my rules, I knew my risk , I knew exactly the reason I'm shorting it , I took a loss and  I'm ok with it. So the only one note to myself: weather was better to NOT DOING ANYTHING rather then take short on strong ticker?!?
RSI ? I do not use that but I may look into it.

                                        JMEI short 16.83 stopped 16.98 15 cent loss
CLF 
This was overextended last few days but the difference between the JMEI and CLF is as follows:
CLF weak down-trending on daily.Momentum down
JMEI strong up-trending on daily out of nice daily break out 14.00.Momentum up.
CLF ran into 15 min resistance  JMEI had no near resistance above.
I think the odds were much more in favor of CLF short , rather then shorting a stock that I plan to go long like JMEI

The reason to short CLF:  15 min resistance , lower highs, weak down-trending ticker on daily

                                            CLF short 4.95 covered 4.82

Was little off on the entry did not look at 1 min chart , it was on a pull down instead of to getting  on pull up, but was good trade. It was good ticker to trade since is very liquid and was able to size up nicely.

YNDX 
Saw  this came from twitter , @codytrades gave me a heads up.
Was great long entry from very strong resistance level and consolidation area 14.70-14.80, the box:) as the @AmyAtrade tweeter ( follow here )  likes to call it ...cute:)).
Took 1:3 risk reward nice trade from 14.78 to15.08  for 30 cents

                                           YNDX long 14.78  to 15.08

Good green day, looking forward to  have another one tomorrow!!
Salute !

Just one trade today IMGN

IMGN
I consider it more as a scratch since I did not let it go to my full risk limit of 17 cents. Loss was only 9 cents in attempt to make 35 cents or much more.
First I missed the short off the open, since opened gap up right into major daily resistance 9.20.
Then I  got pissed off seeing it dropping 60 cents without me on board.
Tried to short HQCL 1.80ish but no borrows , got more pissed off. As I'm writing this HQCL is trading at 1.65.  How nice to know !!!

Plan to short HQCL tweeted here

Then I was waiting for CTRP to get to $60.00  as I planned yesterday explained here.

IMGN long twitted here.

IMGN the crucial moment was staying above 8.80 level after my entry 8.75. I was very focused to see a sign of weakness after my long entry 8.75. It was holding the 8.60 my initial risk stop, it broke the 8.80 and normally  in a good momentum stock this was suppose to take off to HOD. But it did not.
The reason I went long:
Broke above major daily channel with 8.00 as high on some news on 5 times the  average volume. I saw it pre-market as heavily traded ticker. After making higher lows I decided to risk going long. All by the rules, and I do not feel sorry for this trade
The reason I took a small loss: The price action !! it simply did not do what I expected to do, did not hold the 8.80, it dropped closed below 8.80. Then went back up tested it the 8.80 and was maybe a good short. But did not take it. Red day but it could have been much worse knowing myself how implosive I may get when pissed off for missing a trade.

                                                    IMGN   daily  and intra-day

Not always the trading is smooth sailing.
Controlling emotions is the entire battle.
Knowing the technicals is the easy part.
A monkey can learn support and resistance.
But to wait, to be ready , not to miss it, not to rush it, and all in  real time;
THAT'S what makes the top 10% traders.

Salute !
Comments are welcome

How I plan my trade $CTRP $CLF $USO novice traders pay attention!

I always have a plan for lot more tickers, but will share just few.
I mainly look into day-trades, I love instant gratification and I personally do not enjoy to have too many opened positions over night. However the "workload" done to enter a trade weather swing or day-trade is the same. Hence for my day-trade, I am looking for a set up that will be preferably good for a swing trade. If I get some decent profit on the day trade, I may leave small position for a swing that will not affect my day-trade profit significantly if goes wrong. On the positive side, if the swing-trend is correct as I planned, it can make a substantial gains simply by doing nothing and letting it ride. Make money while sleeping,  I would say.

                                                        CTRP Weekly for better clarity
So this is how I plan:
First and foremost , I look at the big picture, the bigger time frame, monthly, weekly daily to get clarity on the major price action, the major trend. Where are the major support and resistances?After I defined those, I will know almost exactly where the price needs to be so I have a green light to get involved by using the same price action "decoding" as I used on the bigger time frames.
CTRP 

I read the chart from left to right:
60.00 was high
70.00 was  higher high
From 35.00 to 70.00 there is a uptrend
From 35.00 to 70.00 the volume shrinks. When volume shrinks on uptrend it may be good sign for trend exhaustion, and possible reversal. So there is THE FIRST SIGN to check mark.
After the high 70.00 price drops below 60.00, reverses hits 60.00 acting as resistance now, deeps to 45.00. The inability to stay above $60 is THE SECOND SIGN of possible change of trend.
For those who cares about fundamentals ( I do not BTW) :Earnings reported on March 19,   0.11 per share , price jumps near 60.00 the one that already failed to be broken. Interesting: 0.11 is the worst earnings since 0.114 reported on Feb 2014. HA! but price went up ? Ahaaaaa because the analyst expected loss of -0.31 per share but in fact CTRP had "GREAT "  worst earnings in a year ?? hahaha. SO there is THE THIRD SIGN if you are a fundamentalist. That's why I do not waste time on fundamentals. Price action shows IT ALL.
So my risk level for short will be over under 60.00. I will look to lose an amount based on he intraday chart will watch it closely on Monday. The risk reward shall be min 1:3 or day trade or lot more if this turn into a swing trade, which would be ONLY if I am right on the day-trade.
No loser ever shall turn into a swing trade !!!


Note*  
Just like in all my other posts: I ALWAYS look from the pessimistic point of view:
What will happen if trade goes wrong?
How much I may lose?
Can I trade again after possible loss?
Can I pay all my bills if  lose on 10 trades in a row?
That is how I figure the size

If you think this is helpful let me know , I may do more similar posts
I love to re-battle any comments too -  after all this is all fun.

$CNDO $FOLD $VSLR the winners and $ESPR the loser

Great trading without breaking the rules.
Nice green day while general market closed in red. Thats the icing on the cake finishig green when major indexes  closed in red.

The trade of the day was CNDO
CNDO long 3.91 , 8 min after marked opened  
CNDO after I locked in half  
CNDO alerted myself in tweeter when to take profit 

                                                         CNDO daily     CNDO Intraday
How did I find it ? I scanned  for advanced on higher then average volume. I went through many charts very quickly and located this as best potential mover for today. Hope my friends took advantage of this move. I don't want people to follow and copy my trades , but for those who understand the thought process this was an easy money. If you do not understand the though process then read read my first post post here. 

I will ill update later  the other trades

Three Trades Three Winners BIOS RAD BDE

Another day without braking rules, did not trade much , although there were some great opportunities. Besides the two shorts,  the BDE was excellent long. It held the yesterday break out above 9.40, for a nice long run for almost $1.00 gain. A text book long trade above the major daily support 9.40 which was a  resistance until yesterday. The 9.40 is  daily swing high.
This long trade idea was actually born yesterday when I was short. This is how it all came down yesterday in explicit details that I like to re-read once in a while in other to condition my trading /mind fitness. BDE the yesterday's short real time review 

                                                   BDE  daily      BDE Tuesday  Wednesday

RAD shorted 8.26 

                                                      RAD short 8.26  covered twice
BIOS short 7.71
BIOS was very patient with this trade when idea is right  
BIOS triangle argument: was it ascending or descending ? Was it long or short triangle?
Well who cares! All I care is weather the bottom of the triangle is far from any daily support or near by. If the same set up of such triangle was right above major daily break out point, daily resistance that turned to be a support, I would be long biased.
In this case study, the triangle on BIOS was on far overextended daily level, with no close or near by daily support where longs may hold onto their positions.
That how simple I like to explain to myself when I wander to be weather short or long. No indicator can 100% guarantee me the direction of the move.
So why bother with complicated studies, when can make it all very simple and less brain hurting?

BIOS    short 4.71    

Note: Keep it simple stupid so a 10 year can understand. Explain to a 10 yr old , if he doesn't get it from the first time , DO NOT TRADE IT !

BDE the short explained

People keep asking me questions, "how did I know" , "how did I get lucky", "How this and how that.."

And they see me I twit the entries real time non stop , I do not talk about trades I took  that I have not twitted real time. ANYBODY CAN do that. It's all about hard work. Putting yourself in doing things that average people do not want to do. Searching and searching and planning all day just to catch that ONE FISH. Sometimes there is nothing out there. So I do nothing! Doing nothing is doing something. You chose to do nothing!. 

When do I short a stock? Simple , when the longs are happy with their profits and are willing to take them. Am I always right? Nobody can be right all the time , in fact I am actually 50/50 on average , with periods of time when I am less then 50% and sometimes more then 50% right. 

While I am writing this BDE is chopping around my entry 9.26 , I have no clue if I will lose or make on this short.  But I know what I stand to lose. I am ok with my size, I am ok with my entry, which is near major swing high 9.40 that I measure my risk tolerance. Look at DAILY chart to the LEFT. 

If this work all the time , we all would be rich and millionaires. The only thing that must work all the time is my discipline to adhere to the plan , and to execute with no emotions, if PnL goes red.

I need to see a good trading size above 9.40 to take this loss. But the idea for short still remains for today so re-entry is possible. if I get stopped.

BDE went through 8.80 swing resistance today as well as through 9.30 swing high, and it is not impossible to go as well through 9.40 and much higher. So there is my risk  tolerance for short. plus has huge above avrg volume , so I will not underestimate its power to go much higher .

11:21 am I saw bigger size printing a bid, Id say longs selling to take gains. If after such price action I do not see a drop, and instead the  price moves higher , there is no reason to be short any more, since the size at the bid was just accumulation,  by "somebody" picking up the long's sells.

I may use any kind of indicator and  I can be still wrong or right. I'm stopped out 9.48 from short 9.26. Risk was manageable and the reward I was looking for was 50 cents or more. 

Now naturally is to look for something else to get in to make the loss back, but , I know that tomorrow morning will be much better opportunity then today during end of day. 

So I will just remain calm, and wait till tomorrow unless I see something really very good as I call it a "penalty kick" 

will update more later

                                                     BDE  daily         BDE intra day   short 9.26

3 winners AMRN MVIS USO 1 loser SUPN

No rule braking day, hope to have a good streak.
I know I will brake some rules at some point, but will try not to as long as possible.
The two winners AMRN  and MVIS had same identical set ups.

AMRN initiated short 3.22
AMRN the set up short 3.22

MVIS short 3.36 initiated 
MVIS the short set up 3.36 

                                                         MVIS covered from 3.36 3.20


USO long swing 16.30 

USO the swing long, closed in positive above 16.30 so kept it swing with stop LOD today




SUPN the swing long 11.70    

SUPN  when I m wrong Im wrong, closed with discipline !!  Great trade !!

LOCO gaper well handled loser

LOCO just did not go well but the risk was limited and under control per plan.
The plan was to risk $0.50 with possible reward to gain $1.00 or maybe more

Loco short 26.85
LOCO stopped out 27.35

After this  I kinda chilled,, did not see anything worth the risk, and hit the tennis court.
I will spend some time of the weekend to read my journal. That reinforces my strengths and reminds me of my weaknesses. The best trading book ever :)

The winner MNGA and the winner AMPE

Green day  again.  Two winners out of two trades. But are those winners the same ?
MNGA short .99
MNGA chart short .99
MNGA the cover 1:3 Risk vs Reward

                                                     MNGA daily         MNGA 5min

The streak of non braking rules in my trading is over today , although I had two out two winning trades. This is what I normally do not do, but some days the mental power is weaker, and wish if I could be tough and  admit when I'm wrong more often.

                                                    AMPE  daily      AMPE 5 min

AMPE was a ticker without near overhead resistance, but took the short due to being overextended, and the lower highs. I said many many times , and I normally obey this rule, that :

• when I am wrong right of the bet , I better close it out and look for re-entry later if price action allows. 

I did not get stop, and my unrealized PnL was down almost as much as I was up on MGNA trade. Got lucky this did not shot up and did not made new highs today. I covered even with small 5c gain.Pure luck !!This must not happen again. I was good for almost 10 days in a row without breaking this rule OBEYING THE PLAN and THE RISK. Many traders will not even pay attention on this, and will count the green days in the row. Again:

•  It is not the green days in a row we need to count, it is the days in row we trade without breaking the rules  

I can always be wrong and take the small loss, move on and forget about it. Better then to be wrong and in pain all day and miss great opportunities. What is mentally  easier? 

The mental power is lot more valuable then the dollar power. If I lose the mental power, I can't focus on opportunities all around me. The bigger the dollar loss , the smaller is the mental power to execute well, and to make right decisions.  Here is a great video on this topic by a great trader, about reducing the mental strength and ability to make decisions by increasing of the dollar loss. 

A must watch video here:  The mental strength

During the "lucky short trade" in AMPE,  I missed on great set up like this that I was able only to watch unfold and stay frozen not taking action 

SUPN the short set up 

SUPN the trade without me on board becaus of AMPE

I will work hard on trading without breaking rules regardless how many times in a row I may be in a wrong trade . That's my promise.