This article was guest-written by SilverSurfer, a former prop desk derivatives trader on Wall Street and founder of LifeStyleTrading101.com, a site that teaches you how to generate consistent weekly income from the stock market. He provides daily analysis of the S&P 500, lessons on how to use options, and weekly podcasts on iTunes. In addition to trading, Mr. Silver has taught the GMAT at GMATPill.com, a popular GMAT prep resource with thousands of GMAT practice questions for MBA candidates.
“The S&P was down 1% in early trading…”
“Although the S&P was up 7% for the year, only about half the individual stocks were up…”
“Sell, sell, sell!”
You constantly hear the “S&P” or “S&P 500” used in stock-market discussions, whether it’s Jim Cramer screaming about something… or a trader at a bank also screaming about something.
However, few people ever define what the S&P 500 is, why it matters so much, and how professional traders use it.
In this article, we’ll take a deeper look at those points and help you set yourself apart in sales & trading interviews with superior knowledge of the S&P 500:
Definitions: How Do You Become One of the 500?