Q: I want to know if you think a short-term trader should only trade stocks that set up in the top two or three strongest sector

A: In general, you’re better off sticking with the stocks in the strongest two or three sectors. This way, the “rising tide” will tend to lift all boats. So even if you don’t pick the best stocks in the sector, your stocks may rise anyway. However, depending on how confident you are in picking stocks, you may occasionally want to consider stocks outside the strongest sectors. This may allow you to catch industry leaders in a soon-to-be-strong sector or niche stocks.