I am stuck in a bad streak lately and my thoughts are going in two different directions. So, I would like your thoughts on this dilemma. I only trade the NYSE. Which strategy do you think is best:
A) Trade only a few stocks, stick to them and try to become a "specialist" on those stocks only.
B) Follow the sector Indexes and basket trade the sectors that are doing well each day.
This dilemma was highlighted perfectly today, because I started off trading IBM, HAL, and AET. I caught the bottom on AET perfectly and did well on that one!!! But, I got chopped to death on IBM and HAL.
However, if you take a look at the sector Indexes, I clearly should have been involved with the Airlines and Utilities. Both of which had nice moves.
My gut feeling is to sit back and watch the sector Indexes. What are your thoughts??
By the time you decide which sector is hot, the actions over. I have always found IBM tough to trade, but maybe that's just me.