• Skip to primary navigation
  • Skip to main content
  • Skip to footer

866-878-9209

support@topdogtrading.com

  • Facebook
  • Twitter
  • YouTube
Top Dog Trading

Top Dog Trading

Learn Day Trading and Forex Trading

  • HOME
  • ABOUT
    • TOP DOG TRADING REVIEWS
  • RESULTS
  • PRODUCTS
    • COURSES & SOFTWARE
    • FREE TRADE STRATEGY
    • SECRETS
    • BEST STUFF
  • BLOG
CONTACT US

S&P 500 Trading: How to Get Superior Returns To the Stock Market

In this video I'll show you a tool that will help you in your personal quest to outperform S & P 500 Trading benchmarks.

You are here: Home / Commentary / S&P 500 Trading: How to Get Superior Returns To the Stock Market

July 5, 2017 by Barry

S&P 500 Trading is considered the benchmark for market performance. If a fund manager can produce better returns than the S&P index, they’re considered a super star. Yet the vast majority of even professional traders fail to achieve that aim.

For this reason, many investors simply want to learn how to invest in S&P index fund and that’s fine. But what if you want to try for more?

Some learn how to trade S&P 500 options, thinking the extra leverage may help them.

In this video I’ll show you a tool that will help you in your personal quest to outperform S&P 500 Trading benchmarks.

Let me know if this video on S&P 500 Trading was helpful to you. Please leave a message in the COMMENTS section at the bottom of this page. 

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.


VIDEO TRANSCRIPT

Welcome to this video on S&P 500 Trading.  This one is very interesting. One of the most, really powerful things that I have come across and so let’s dig right in.

This is especially good for swing traders and ways to potentially outperform the S and P 500 which is the benchmark that most firms use and so forth. And of course as you probably know, very few people, very few funds outperform the S and P 500 index, so if you can do that, you are already in the top echelon of traders.

So here is one way to attempt to do that. No guarantees of course. But here is a way that, one technique that I use that works very very well for me. So take it, try it and here it is.

YOU CAN’T USE A NORMAL CHART IF YOU WANT TO OUT PERFORM THE STOCK MARKET

What we have here is a little bit of an unusual chart for most people I would say. And if you look over here, we don’t have any prices. We have percentages. And that’s because we are using a chart that is a percent change chart. So what it does is it starts, I have a start 90 days ago, so when I start on the left hand side of the chart. That’s 90 days ago, 3 months. And then of course it starts at 0.

I don’t know if you can see that. Really thin yellow line, but that starts at 0, so it, of course on day 1, it has 0 change. So then, as we begin, going after, the very first day that we begin, then it’s going to go above or below, and that tells us the percentage change that that market has had.

Okay, then we are going to compare, so anyway, you can tell as of this last day on the chart here, the S and Ps at 5.84 %, okay and that’s the black line. The black line on here is always going to be the S & P 500. Now, then I use another line, and I plot another market. In this case, it is the wrestle, the wrestle 2000.

USING PERCENT CHANGE IS THE KEY TO S&P 500 TRADING

We are comparing the percentage change between two markets. So here is the shift, and this is what we are looking for is the shift where now, again remember this magenta line, this purple line is the wrestle 2000, and it shoots above the S & P 500, and now it is, almost made twice as much money on a percentage basis than the S & P 500. 5%, 10%.

So that’s great, okay now that’s the easy way to read it, that’s the beginner’s way to read it, and not necessarily the best way. So you could look for simple cross of the two markets here. Alright, that’s one way.

A GREAT INDICATOR FOR THE SPX TRADING VIEW

Another way is to use an indicator like this, which is just a simple mathematical formula. It’s called the spread, or sometimes it’s called the difference, and all it does is it measures the difference between these 2 lines. So you make one as the major one and then the other as the secondary one. So what we are doing is, we are really in this case we are going to have all our charts the S&P 500 index.

That’s going to be our standard and we are looking for market that may outperform it. So we are going to have this line, have the dominant market be our comparison market. So if you look at this, what you see is that this line is going down down down down down down. And that means of course that are secondary market, the wrestle on this case is underperforming the S & P.

LOOKING FOR A “SHIFT” IN THE RELATIONSHIP BETWEEN THE S&P INDEX FUND AND ANOTHER MARKET

Then we are looking for a shift. So this will give us a little earlier reading potentially, where if we could draw for example, a trend line here, unless it breaks that trend line, get in there, and then potentially get in a little bit earlier here, instead of here. And that gives us more profits. We are getting in earlier.

Another thing that you can do is you can draw horizontal lines like this, gets you in about the same time at this point. Okay, so that’s all great. Gets in Just a little earlier. Now let’s compare with some other markets.

AN EXAMPLE OF HOW TO POTENTIALLY OUT PERFORM S&P 500 TRADING

So we could go through the major indices and go to the NASDAQ composite. Now here, again the black line is the S & P, the magenta line is the market we are comparing it to. In this case, the NASDAK composite. It’s underperforming. It’s only made 3.9% as opposed to 5.4%. And now you notice the difference line is just kind of going sideways. And it had gone up, now this looks weird.

The way we have to look at this is, that the spread, actually like calling this indicator the spread indicator. The spread between the 2 lines is that distance there which is, well bigger than that distance here. So if you would have bought here, you would have made more money than if you would have bought the S&P 500 at this time. Notice that if you bought the composite.

Even though the magenta line is still under the black, and that’s why, you know if you bought this, breaking this high here, or trend line here, you would have made money because that’s closing the spread, and therefore during this period of time, it’s catching up. Now this period of time, it’s losing ground again and that’s why this thing goes down. And the spread between the 2 lines is much bigger.

THE VARIABLES

So a lot, of it depends on when you get in, you get out, things are in flux, just like everything in the market. They are dynamic flux of up and down. And so it’s not always a long term strategy. It’s a Swing trading strategy. Which is holding overnight but for short periods of time.

Alright, let’s look at couple of other markets just out of interest. So now if we go down here, you can do this for example with, just deciding to what do I want to trade? alright, so for example right now, we have got great opportunities with currencies, but if you don’t want to trade Spot forex, you can always trade, and you can do this with Spot forex, you can do it with futures, you can do it, in this case with ETFs. So say well, maybe I want to invest in currencies.

IT’S ALL ABOUT TIMING IN THE STOCK MARKET

Well, probably not so much right now at least. Because here, again it’s all about timing, right. So here, here, here, here, here, it’s underperforming. That’s the magenta line, that’s the euro. That’s euro. And then it caught up, and then we broke that line, yes you would have made more money buying the euro, than buying the S & P 500. And then we get another shift again. Crossing of the lines here, breaking of the trend line here, and then you would be like, ‘ah no, don’t want to be in the Euro anymore, now I want to be back in and be doing S&P 500 trading.’

So how do we get some indication as to when that might occur. Well during this time, these markets are moving pretty much similar way. The S & P 500 and the emerging markets, and not seen by the spread indicator. Just kind of going sideways here. So what the opportunity is, we look for it again, the cross of the lines, but more specifically I like to look for this breakdown here, this support.

THE ALL IMPORTANT “SHIFT”

That’s the key. That’s where, okay, now we are getting a shift where in this case, the S & P 500 index is outperforming, and it’s going up a bit, but the emerging markets are going down dramatically.Then again, another breakdown occurring there. And that’s where you could go short.

To outperform the S&P 500 index, you don’t always have to be buying something that is doing better on a percentage basis. Being more bullish in other words. So you can get a little tricky and say, hey I am going to short markets that are going down more than the S & P is going up. And that’s another way to potentially, financially outperform doing the S&P 500 trading.

What did you think of this tutorial on S&P 500 Trading?
Enter your answer in the COMMENTS section at the bottom of this page. 

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

FREE GIFT!

Also I am giving away one of my favorite chart patterns that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in S&P 500 Trading also showed in interest in this video:
http://www.topdogtrading.com/stock-market-techniques-that-even-work-in-the-stock-market-for-dummies/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1

 

Commentary,  Investing,  Stock Market Trading,  Stocks buying stocks,  learn the stock market,  S & P 500 Trading,  stocks market,  Swing Trading

FREE TRADE STRATEGY!

You'll receive one of my favorite setups for E-mini trading, Forex day trading and stock market trading: "The Rubber Band Trade."You'll receive it on day 4 of my FREE 5-Day Video Mini-Course: "Make Money by Breaking Every DayTrading Rule You Ever Learned!"To get the setup for "The Rubber Band Trade," your subscription to my newsletter, special promotions from me and my valued trading associates, and the 5-Day Video Stock, Emini and Forex Training, simply fill out the form below.You'll instantly receive an email with the link to your first video lesson TODAY.

GET IT NOW

Footer

Top Dog Trading

866-878-9209

support@topdogtrading.com

15030 Ventura Blvd, #618
Sherman Oaks, CA 91403

Sitemap

  • Home
  • About
  • Best Stuff
  • BLOG
  • Contact Us

company

  • Terms of Service Page
  • Privacy Policy
  • Risk Disclosure
  • FREE SUBSCRIPTION
  • COURSE REVIEW

This site makes use of cookies which may contain tracking information about visitors. By continuing to browse this site you agree to our use of cookies. CLICK HERE to learn more. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.

 

RISK DISCLOSURE

 

These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

 

IF YOU DO NOT AGREE WITH THE TERMS OF THIS DISCLAIMER, PLEASE EXIT THIS SITE IMMEDIATELY. PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.

 

The information contained on this site is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible and common. Seek the services of a competent professional person before investing or trading with money.

 

Neither the information contained on this site, nor in any other place, is provided to any particular individual with a view toward their individual circumstances and nothing on this site should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. There is a substantial risk for loss when trading securities as they are highly susceptible to the risks and uncertainties of certain economic conditions. For all these reasons and others, your use of the information provided on this site, or any other products or services, should be based upon your own due diligence and judgment of how best to use the information, and subsequently independently verified by a licensed broker, investment advisor or financial planner.

 

Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. There can be no assurances of future success or performance and we will not be responsible for the success or failure of any individual or entity which implements information received from this site.

 

WE DO NOT IMPLY, PREDICT, OR GUARANTEE THAT YOU WILL BE SUCCESSFUL IN EARNING ANY MONEY WHATSOEVER. IF YOU RELY UPON ANY FIGURES OR INFORMATION ON THIS SITE, YOU MUST ACCEPT THE RISK OF SUBSTANTIAL TRADING LOSSES.

 

Past results of any individual trader are not indicative of future returns by that trader, and are not indicative of future returns which may be realized by you. Neither the author nor publisher assume responsibility or liability for your trading and investment results. This site and all information therein is provided for informational and educational purposes only and should not be construed as investment advice. The author and/or publisher may hold positions in the stocks, futures or industries discussed here. You should not rely solely on this Information in making any investment. You need to do your own independent research in order to allow you to form your own opinion regarding investments and trading strategies.

 

It should not be assumed that the information in this web site will result in you being a profitable trader or that it will not result in losses. Past results are not necessarily indicative of future results. You should never trade with money you cannot afford to lose.

 

The information in this site is for educational purposes only and in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. There is an extremely high risk in trading. This information is provided “AS IS,” without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice.

 

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

 

  • Facebook
  • Twitter
  • YouTube

Copyright © 2023 Top Dog Trading. All rights reserved. Return to top