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So my last post with this subject was about gaming the game in a way that has little to do with stock picking. This post, althought it has the same title, is slightly different. This is the other main strategy I have noticed the big boys doing to get ahead. This strategy unlike the other one discussed, could actually be done in real life, which gives it more "street cred" in my book.

This strategy simply involves finding the current "hot" sector (easier said than done) and buying EVERYTHING associated with it. If Emerging Markets are smoking, buy anything that sounds, looks or smells unAmerican. If healthcare is taking off, buy any company that has ever thought of medicine or drug research. The list is endless as a new sector is constantly getting hot and then cooling off. The alternative is also true then as one could short an entire sector as it cools off or is having problems for some reason.

I hope to use this strategy more than the other one cause it requires less work trying to make sure I've shorted a falling stock 9 times in the past 3 months and because it is easier to find a group of stocks to pick to go up than find individual stocks.

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