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Eye on the Market with David O. England

Eye on the Market with David O. England
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By David O. England
Sep. 26, 2014 | CARTERVILLE, IL
By David O. England Sep. 26, 2014 | 01:44 PM | CARTERVILLE, IL
Performance Audits-FINAL



For the last two weeks, I have compared reader’s holdings performance vs. the S&P 500. Today, I audit the final reader’s portfolio.  To recap, I do not give buy or sell recommendations or tell what to buy or sell.  I teach my proprietary trading systems and how to monitor your securities performance vs. investing in the market-something you will never see graphed in your monthly brokerage statement.



Some of the most important data to evaluate our securities holdings are performance charts in one, five, ten and the most important timeframe-since they were purchased.  The reader plans never to retire but wanted to know the facts about his portfolio performance.

 

With today’s technology and the proper training, one can monitor their securities’ value.  My favorite is the performance tool at stockcharts.com.  I programmed the reader’s five holdings in a one-year chart.  You can see the results.  



The green-shaded area is the price performance of the S&P 500-17.07 percent in the past year. During the same time period, out of five securities three are outperforming the market.  I evaluated the results in multiple time frames to get a more accurate picture.  Since the market bottomed in March of 2009, four out of his five securities are outperforming the market. The reader self-manages his account and does not have his account professionally managed.  



What can we learn from the performance audits from the last three weeks?  First, there is technology and training available to audit our holdings’ price performance. 2. Many times, what we own is not performing how we think it is. 3. Performance is not a profit or a loss reality until the transaction is closed. 4. Past performance does not dictate future returns. 5. Price performance is just one factor involved in our portfolio selection. 6.  Some investors can self-manage their accounts and be profitable.  7.  One should have an account performance audit at least once per year.  



In all three audits, how the investors thought they were doing was actually the opposite of how they were really performing. Is it really worth the gamble not to know the facts?  Do you know how to use these very useful audit/performance tools?  During these performance audits, it has been interesting to see the majority of securities underperformed the market.  How are your securities performing vs. just investing in the S&P 500?



Plan your work, work your plan and learn to share your harvest!



Source: davidoengland.com, stockcharts.com



Full Disclosure-I do not own any securities listed in this column.



DAVID O. ENGLAND is the founder of the Eye on the Market Radio Show and Training Academy and retired associate professor of finance at John A. Logan College. This column is presented for educational purposes only and is not intended as financial advice. For questions, contact England at thetraderseye@gmail.com.
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