David O. England: Eye on the Market

Since 2002, I have educated people on the workings of the stock market. As the founder of the Eye on the Market-Training Academy and associate professor emeritus of finance, John A. Logan College, my goals have been to empower investors and traders on Main Street, how not to be fleeced by Wall Street and how to build financial wealth.

Mind you; I am not an advisor or a broker, but rather an active trader/investor financial analyst and educator. For the next 12 weeks, I will show what goes on behind the curtain and discuss what Wall Street does not want you to know. 

So why am I writing this column? This year and next will be pivotal for many readers and investors in Western KY with the upcoming Fiduciary Rule, along with the current bull market getting long in the tooth, so to speak. Without proper risk management, many may be wiped out by the next bear market begins.

Many may be asking, “David, with all the financial analysts, why follow you?”

Well, here are five reasons:

First, I have no problem challenging Wall Street. In 2015, I challenged CNBC’s main stock picker Jim Cramer and his “49 stocks to buy now.” Using my proprietary “Simple Simon” system, I determined the majority of his “buy now stocks” were not quality picks. One year after my challenge, only 14 of his 49 picks were in the green. Third-party audit results are on my website. 

Second, in early September 2008, using my system, I warned followers and students there was a financial storm coming, and it was time to take profits. Two weeks later, on Sept. 29, the Dow dropped 770 points -- in one day. Those advisors and brokers who made fun of my call were not laughing after the huge drop. 

Third, I am not a broker. I do not sell mutual funds or any other securities. Therefore, commissions are not an issue.

Fourth, I develop proven trading systems and provide them, free of charge, on my website at Davidoengland.com. 
And, lastly, Wall Street has been extremely successful making investing intimidating. I want to show you how investing can be simple and fun!

I have said that being an advisor/broker can be a difficult occupation.  There are good and bad advisors/brokers and many in between. Some are extremely successful for their clients, and some are nothing more than street-corner salespeople selling products that are better for the brokers’ company than for their clients. In future columns, I will provide questions to ask to determine which group your advisor/broker is in. 

By the way, many brokers would appreciate better-educated clients. I do not give buy or sell commands, but teach concepts and tools to make better-informed decisions. In the weeks ahead, you will see how I disprove some market axioms. 
Making money without a proven system is tough. Just ask the 82 percent, according to WSJ.com on April 13, of high-fee, actively managed US stock fund mutual fund managers who did not outperform (last fifteen years) the market.

What worked over the last ten, twenty and thirty years may not be as effective in today’s market. There is no single best strategy to build financial wealth. I teach proven investing/trading strategies for both Bull and bear markets.

In the weeks ahead, I will be discussing popular topics that include active vs. passive investing, the fiduciary paradox, charting, stocks vs. ETFs, revenue sharing, gold and silver, fundamental vs. technical analysis and how the largest (low vs. high) commission funds performed compared to the market.
And, I hope you will join me.

So, where do we begin? Next week, I will introduce new terms and dispel the Wall Street myth: “Don’t worry, the market always comes back.” This is a very popular mantra with some street-corner brokers to convince customers to “buy and hold.”
 
David O. England is the founder of the Eye on the Market-Training Academy (Davidoengland.com) and Associate Professor Emeritus of Finance. This column is for educational purposes only and not intended as financial advice.Your decision to buy, sell, short or hold any investment product is a direct result of your decisions, free will, and research. Questions-send to thetraderseye@gmail.com.