Finding viable trades that can make you a quality return start with learning markets and industries and the companies that are growth leaders in those market sectors. This discipline also helps individuals learn how to manage a portfolio that is properly diversified. The Industry Sectors displayed below are a dynamic picture of the many markets and cohorts that are currently or have historically been successful trading vehicles. OptionsWest has found this presentation very helpful for our own trading and as a great tool for our students to learn today's market landscape. The landscape of specific companies that can be successfully traded is of course a dynamic not a static picture, but usually firms remain players for many years if not decades. All companies tend to go in and out of favor as the market rotates, so sector popularity must always be taken into account when investing. The Stock/Sector Sheet presents most of the stocks that are currently trading vehicles for the major mutual funds and hedge funds. Theses "big money" players move the markets and movs stock prices. Following their lead is a good way to trade the markets.

These "Sectors" match the industry/sector breakdown on your "SectorSTOCKSheet". All of the stocks listed on the SectorSTOCKSheet give you a good picture of the stocks that the Mutual Funds and Hedge Funds trade. Focusing on these stocks gives us a good idea where these big funds are putting their money.

 

 

© 2010 OptionsWest