$LXRX was up on news yesterday and the stock seemed very strong all day. Today not so much. When the morning move failed to break above yesterday highs of 13.80s I started eyeing it for a short. The plan was to wait for the EMA to cross down over the VWAP and look for lower highs. 13.35 was a key point of interest because it was support for the morning move, so I knew that if that couldn't hold then there was potential for bigger down move. Once it broke below it I entered a small position of 250 shares at 13.30 and set a hard stop at 13.40. I covered at 13.07 for a .23 profit. I should have covered half and let the rest run, but like I said I had a small position so I didnt want to waste commission. Either way I need to focus on trading well and not on profits. When I look at my PnL I tend to get a little anxious and usually get out of my position too early for fear of having it turn against me.
Some important things I need to keep in mind moving foward:
-Pay attention to where stock is trading at 10-11am, this is usually a good indication of which direction it will continue the rest of the day.
-Pay attention to where the VWAP is at. Be more long biased if trading above/more short biased if trading below.
-Setting hard stops and moving them up as I scale out.
-Pay attention to whether its "day 1" of the move or not, and dont short if it is.
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