Sector trades & a few other questions

[phimor]

Hi Everyone,

My first post on this site (in fact my first ever BB post!). Like the content, speed & design of the site.

Have enjoyed reading & learning over the last few months and hope to start contributing as my experience grows.
Have been S/B for the last year (with small gains so far) and trying hard to improve T/A and keeping money management under control, starting with £2K. I would appreciate your views on a couple (well 3!) questions:

Is there any real advantage in trading sectors instead of UK shares - seems to offer opportunity of T/A without some of the specific stock risk?
Conventional wisdom seems to be to trade in the direction of the market trend, (primary. secondary or short term?) but is it valid also to have a combination of S/L trades which are closer to market neutral, to reduce risk if you have not read the market trend properly?
Lastly, (and thanks for your patience), any experience/views of using Simultrader/e-yield, a subscription analysis service for T/A & education, offered by onewaybet.com?

 

[Skimbleshanks]

First of all welcome to T2W, and we're honoured that for your first post on any BB you chose here!

My 2p worth:

1. It doesn't really matter what you trade; the risk is always there. So keep the risk small, and your profit potential increases.

2. Many people suggest that it's best to trade with the trend, and this is, of course, true. However, it is perfectly OK to trade against the trend on the sole condition you remember that you are swimming against the tide. Therefore, assume that your trade will be short, and keep a very careful eye on it. If you are unsure, just exit and wait for a clearer signal.

3. Any subscription based analysis service is just that - they're doing it for the subscriptions because that is usually a far easier way to make money than actually trade. Just hang around these boards, read, ask questions, and accept that to trade properly you need to educate yourself. This won't happen overnight, so take it slowly, one day at a time, and one trade at a time, and you will get there.

 

[phimor]

thanks for your welcome & comments