It’s hard to know what direction to go in online stock trading. I really don’t want to park all my money on the sidelines, because there are some really good buying opportunities out there.

If I wait to predict the bottom, I may miss it.  Then I’ve missed a great chance to ride some things up.

But what sector?  

The big guys like Warren Buffet are buying some distressed financial and insurance stocks, but only with some really good incentives tossed in. Those aren’t available to me, but will his money raise all the trading votes?

I’m not sure about commodities, either. Sure, gold has ridden up quite a bit, and it’s not exactly cheap anymore.

Tech stocks have been hit hard, too.  Apple has taken it hard because of some rumors about Steve Jobs health and also about the prospects of sales of computers and ipods going forward. Apple now has eleven percent of the personal computer market, and it may stall there due to the economy.  Job’s health scare turns out to be some joker, but it shows how touchy that stock may be.  Yet, it’s gone down a bit, which makes it attractive.

Utilities are safe, mostly.  Not much growth potential, but a least it’s not a shirt loser. But if it’s not a rough winter some of those stocks could sell off quickly.  I think I will probably allocate a few more percentage points to utilities.

Over the weekend I’ll do some research and see what some friends are saying on forums about utilities. Maybe they will have some specific tips.