By Phil Jacobs
Let’s get to the admission part right away.
I have no idea how the stock market works. I kind of leave that knowledge up to the financial planner that my wife and I use just like the CPA we hire to do our taxes.
So who enters my life but Ocean City resident Drew Sands, who has written a book called “Stock Market Profits, Seven Simple Secrets?”
I’m not implying here that Drew has written “down” to a lowest common denominator. Absolutely not, but I will say even I came away finally understanding how all of this market talk worked.
Right from the start, Drew tells us that “stock market trading is a serious business, and stock market winners take a disciplined, business-like approach to their stock trading.” He writes in his book concepts I never heard of when it came to stock trading. For instance, “Create your mission statement (you will likely lose money without one)” and “Make a few essential decisions before you put one penny into the market.”
Here, by the way, are the seven important steps he writes about in his book.
- Minimize your risk of losing money in the stock market.
- Get into the overall market at the best time.
- Invest in the best business sectors and industry groups at the right time.
- Identify stocks with a high profit potential.
- Choose the best of those stocks to buy.
- Buy your stocks at the best time.
- Sell your stocks at the right time for maximum profit.
Drew Sands wants you to succeed at the otherwise tricky world of the stock market.
If he can’t be there to personally consult with you, he can at least give you much of his knowledge in his recently published book.
The book, by the way, is now one of the top listed business resources on Amazon where one can purchase it by either entering the book’s title or Drew’s name.
Drew grew up coming to Ocean City where he worked on the beach taking photographs for the Telescope photos that were sold to tourists. He was also a beach boy, renting beach umbrellas, chairs and mats. His territory back then was between the pier and the jetty and the year was 1959 to 1960.
He would go on to graduate back then from Towson Senior High School in Baltimore County in 1960. Drew would also go on to work as a lifeguard for the Sparrows Point Country Club. Numbers and logic were clearly in his future.
“I liked the idea of working with data and trying to present something with that data,” he said. It was the stock market, with its ups and downs that had presented him what he described as an “interesting mathematical challenge.”
Drew earned his BS in Social Sciences from the American University in Washington D.C., in 1966. He would go on to earn his MA in Counseling and Testing Psychology, also at AU in 1967.
He became a trading system consultant in 1999. This is what he does now. A trading system consultant designs, develops, tests and evaluates complete stock market timing and trading systems for clients who include money managers, stock brokers and private investors.
VectorVest is a stock and analysis portfolio management system that analyzes, ranks and graphs over 23,000 stocks for relative value, safety and timing. VectorVest gives a buy, sell or hold recommendation on every stock, every day.
Drew designed and developed the original version of the VectorVest Technical Analysis course. He also created portions of the ProTrader Technical Analysis section of the Two-Day VectorVest Investment Seminar.
He taught stock trading for about eight years, traveling throughout the U.S. and Canada to work with VectorVest seminar attendees. He led the VectorVest User Groups in San Diego and Los Angeles for five years, where ideas between traders were exchanged.
Drew writes that he doesn’t want the reader to become “one of those unhappy, frustrated traders who watches loss after loss pile up and then gives up, sadly concluding that they just can’t be a successful trader.”
In the book, he shows stock market practitioners why it is important to keep trading records, how to maximize what the reader has learned from both profitable and losing trades, and how a person can multiply profits while gaining experience and knowledge from trading records.
In Drew’s years of experience he said he saw “simple dramatic and clear cut differences between the traders who made substantial profits from their trading activities and the traders who sadly watched their brokerage accounts suffer losses, trade after trade.”
Perhaps one of the more key revelations in the book is when Drew explains that a trader has to possess a “clarity of vision” in his or her business plan. And, he writes that many stock market traders do not really view their trades as a business. Big mistake, he points out. Stock market trading is not a Las Vegas risk, he said, nor is it an intelligence test. It is, again, he said “a very serious business.”
With the word “serious” in mind, there are also some extremely humorous cartoons/illustrations included in the book to lighten it up.
Another part of the book that I found very helpful was Drew’s inclusion of a glossary. He wonderfully doesn’t take anything for granted especially words of the business world.
And I think if there was one phrase that Drew gave me about the stock market was the value of “trading by the rules, rather than hunches.”
I have a hunch if you take a look at “Stock Market Profits, Seven Simple Secrets,” you’ll benefit from it.
Plus, it’s nice to read book written by an Ocean City resident. Drew lives here with his wife Margie.
Also, if you need a word with Drew, email him at Consulting@TradeByRules.com
Okay, so I made notes from his book and I understand more than I ever had before. I tried though to explain it all to my wife last weekend. She took the book from my hand and started reading.
Drew is better at teaching this than I am. I think that’s what she was implying.