I have no experience with SW1 but I've played 2 and 3 quite a few times so perhaps I can give you a few tips.
As you probable noticed contact with pirates vary from sector to sector so avoiding really crowded sectors is an option.
You sort of have to slow-play the game, if you rush from mission to mission your team isn't able to gain enough exprience (and money to buy equipment). And don't worry if the game tells you to hurry (some missions tell you you're expected somewhere asap) there is no need to rush, most missions a triggered if you enter the sector.
As you pointed out, selling equipment and buying stuf you really need is always a smart move.
The use of "better" weapons is a bit more complicated, your pilotes have skills (perk tree) so giving a pilot with bad shooting skills a low RoF accurate weapon is not effective, he is better of with a machinegun.
And if everything fales and you have to flee, you can avoid contacts by flying high or low that way you won't be seen.
Last but not least, save regularly.
I hope this is of some help to you.
If you like the game, there are some cool mods made by other users on this forum.
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