ESV - 8 I will instruct you and teach you in the way you should go; I will counsel you with my eye upon you.
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In my opinion, what God (speaking through David) is saying in this verse is that, if people look to Him for guidance and direction in how they should live their lives or make decisions, He will watch over them (or "keep His eye on them", as we would also say in idiomatic English), and respond to their need or request by instructing and teaching them. As the next verse (verse 9) then admonishes, those seeking God's guidance should act wisely by willingly heeding His counsel and instruction, and behaving accordingly, as contrasted with less compliant people, who will not heed counsel or advice (even if it is intended for their benefit) unless they are compelled to do so. I view this as somewhat similar to the thought expressed by Solomon in Proverbs 3:5-6.
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