I have been trading a simulator for 6 months using an imaginary $25,000. When I am going to start live trading, that is the amount I will use.
One issue that hits me straight away is the fact that there is a very limited number of trades that I will be able to take at any one time.
I am considering the best method to pick the best possible stocks to maximise my profits. Having read "Stan Weinstein's Secrets for Profiting in Bull and Bear Markets," I was intruiged by the Sector selection process he uses. For someone like myself starting out (and looking to hold for a few days to a few weeks) is this a good approach? Consider the strength of each sector and then take trades which show the best technical strength in the sectors which show the best technical strength?
I apologise if this seems too obvious but I am not used to doing this.
Also I'm thinking it might be smart to have a trading rule where I sell out of stocks which haven't moved in my direction as soon as I had anticipated to take other better opportunities.
I'd love to hear some opinions/wisdom as to capital allocation as I have very limited knowledge of it.