Definitely try choking up on the joystick. The top part of your thumb has the largest range of motion. So if that is your point of contact with the joystick, it's going to move the PCI around a lot.
But if you use the lower part of your thumb below the first line on your finger to control the joystick, it will reduce your range of motion significantly.
It's really just a matter of preference. I like the outline cursor that looks like a circle with a dot in the middle. I know a lot of people who like the wedge cursor though.