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See how investing can be simple
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Every expert will tell you that today is the best time to start investing. Fewer people claim it’s easier than you think. Of those positive commentators, almost none are as convincing as Charles Payne in bringing ordinary people a sense of power and confidence through his financial decisions.
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Payne, the well-known market analyst, host of “Making Money with Charles Payne” on Fox Business and one of the “100 Most Influential Financial Experts”, emphasizes simplifying the investment process for ordinary people, giving them, as Allbusiness says, a “renewed belief in America and the notion that the future can be whatever they want it to be through investment and self-determination.”
For Payne, “investing can be simple if you allow it to be simple” and start learning right away. “Start. Start. Start. Don’t wait for the one surefire move because there isn’t one.”
Here are some simple investing principles that Charles Payne endorses across his various channels.
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Learn the fundamentals and do the groundwork
Speaking to GOBankingRates about building wealth, Payne emphasized the importance of learning.
“Always be a student. There are twists and turns in life, and what works today may not work tomorrow — the only constant is to keep going and keep an open mind,” he said. That means not only gaining a basic understanding of how the stock market works and knowing key concepts and terms, but also delving deeper into trends, company profiles, industry advantages and growth potential.
Be patient and focus on long-term goals
Payne believes in trusting your long-term goals — you’ve spent time defining clear investment goals and have defined your long-term financial goals. So why would you start changing your strategy and start putting all your money into one stock or start trading quickly and panic selling? You’re not investing your money to buy a pair of sneakers next week, you’re building wealth for your retirement savings, buying a home or funding an education.
Invest in what you know
In a Fox Business clip posted on May 31, Payne talks about doing your research but also investing in companies you’re familiar with and industries you understand. If investing is on your mind while you’re shopping and you’re going to buy something at Old Navy (to use Payne’s example), “the moment you hand over your credit card, that’s going to be your eureka moment.” Having a stake in products you consume will help you make more informed decisions and stay confident in your investments.
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Be diversified
In his book, “Future-Proofing Your Portfolio,” Payne provides a guide to understanding the fundamentals of diversification and the knowledge to make informed strategic decisions that align with the future of your investments. Most experts agree on creating a balanced portfolio that includes a mix of stocks, bonds, and other assets to reduce risk, and Payne is no different.
Keep a cool head and be disciplined
Investing in stocks can be an emotional rollercoaster, but Payne stresses that you shouldn’t let fear drive your investment decisions. In the event of a market crash, trust your research and decisions. They may not always be correct, but they are yours.
“The beautiful thing is that the bull runs are significantly longer and more profitable than the bear runs,” Payne said in 2022, but it’s good advice for this year and all the years to come. “This is a year to refocus on balance, safety and patience.”
Don’t lose touch with simple strategies
Part of always remaining a student is learning to be adaptable based on new information and changing market conditions, but also to use the simple strategies that have already been burned into your brain. Just because a lesson is common knowledge or basic doesn’t mean it doesn’t work. Payne isn’t shy about promoting strategies like dollar-cost averaging (investing a fixed amount of money at regular intervals regardless of market conditions) and buy-and-hold investing (buying quality stocks with strong financials and reliable management and holding them for the long term).
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This article was originally published in GOBankingRates.com: Financial Expert Charles Payne: Here’s How Investing Can Be Simple