Originally posted by Bogdan G.
S&P 500 Overlook
My Advice on S&P 500 in 50 Words:
The index is affected by the common stock performance of the 500 companies contained by it, but different importance is given to different companies. When trading S&P 500 it would be wise to keep an eye on extremely large companies like Apple, Google or Microsoft. Their performance will most likely affect the index more than a less known company.
Dow Jones - Industrial Average Overlook
My Advice on Dow in 50 Words:
The Dow consists of just 30 large cap publicly traded American companies. Being composed of only 30 companies, it can be easier to trade sometimes because we have to be well informed about fewer companies and the importance held by one company’s stock price within the index is greater.