I think your trying to beat billion dollar algorithms controlled by money managers that have billions in their portfolios and years of experience.

That being said it's not impossible, listen to some Peter Lynch and use his advise if you really think you want to invest on your own. You could also toy with a little money in each option, see how a few weeks go...then re organize your portfolio. There's no real wrong answer to this, but I'd diffuser being very careful with your picks if your trying to outperform s&p or even an ETF.

Per Mr. Lynch's logic: Best picks may not be hot stocks in hot sectors, look for strong companies in sectors that have been beat up. Maybe a company that hasn't posted the best earnings, but is still a consumer staple. Boom, that's where you find the good long term investments.

Finally, use what you know for your upper hand on money managers. They have to watch 10s to hundreds of stocks, you can narrow down 5-10 to really watch and study. Maybe own 4-6 and watch a few more.

Good luck, get those gains.