Market View 25 May 2010

Wall Street reacted the opposite of last friday closing
in the last few hours of trading. "U.S. stocks slid on Monday,
driving the Dow to its lowest level since Feb. 10 as fresh signs
of Europe's banking problems emerged." Dow lost 130 points,
S&P 500 fell 14 points and Nasdaq dropped 15 points.
I still believe that we will see a reasonable rebound this week,
as the indexes are tested at the support level again.

Yesterday, one of the trading friends told me that he got
hitted pretty badly in last few weeks of trading, It is not
about the stocks selection or the timing, but it is because
he trade using credit card advances, and the figure had
mounted to a disastrous level.

He traded on contra and pay-off the losses using credit
card but enjoy the profits to the fullest without any thought
of preserving them as future ammunition for further contra trades.
But the main killer of his trade is that he simply has no
cut-loss level, and just let it become worse and hope for
a miraculous reversal, which most of the time never came.
He is heading for trouble, and when a destructive wave comes
by, he indeed got hitted badly and got to "temporarily"
exile from the market to recuperate and service those
card bills. I have no doubt that he will be back again
to the same pit-hole unless he learn the lesson well.

We are looking at a weak opening, but I see a better
closing although it will be wise to be cautious to any
further sell-downs. If you want to trade, for goodness
sake, stick with the greens.

Enter any position with a Cut-loss level & Trailing Stop,
and Please practice strict (Risk)Money-management.
If you don't like what you see in the market,
simply don't trade.

If you have Skype, and would like to chat with me about
stocks and all others, you can ring me at my
email address: stocklobang@yahoo.com
I have currently a couple of members skyping with me
everyday,and they are having good trading results.

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!

市场生存座右铭: 风林火山