Charles V. Payne is the Founder, CEO and Chief Analyst of Wall Street Strategies. His stock selections reap sizable profits for his subscribers and viewers. He is a regular guest on Fox Business Network, and several well-respected finance-oriented radio and television programs.

Charles is widely recognized in the media as a leader in the analyst community and recently authored his first book Be Smart, Act Fast, Get Rich. He is often sought after for his market opinions by prestigious organizations, and is regularly featured for seminars and speeches.

It was a lot of fun to talk to Charles about how he identifies investment opportunities. This is the second part of that interview.

Optionetics: Are your trading systems geared more toward long-term strategies or short-term strategies?

Charles: Both…historically I believe investors should be 70% long term and 30% trading…now I think it is should be 60% trading the only way to make optimal profits in this roller coaster market.

Optionetics: What are some of the key rules or factors that you consider before selecting any potential trading opportunity?

Charles:  Ironically even though technical analysis plays a large role in our trading service we always begin with fundamentals. I want to know that the company I'm trading has great potential in case I get stuck. Then we use very simple trading patterns including channels, formations, moving averages and volume.

Optionetics: What are your favorite markets that you like to trade and track with your analysis tools?

Charles: US equities market.

Optionetics: What is your most memorable trade?

Charles: Its crazy but I don't know, we have so many winners but I'm most proud of the ideas that were against us came back and then collapsed after we took our clients out for a profit.

Optionetics: With all the different technical as well as fundamental analysis tools out there how does a new trader avoid information overload or "analysis paralysis"?

Charles: Great question, I use to employee two dozen technical factors and found myself confused not knowing whether to punt, pass or kick.  Learn them all and find six or less that work for you.

Optionetics: Thanks, Charles, for speaking about your trading approach with our Optionetics reading audience.

To read previous installments of this interview, please click here.

Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum