By Michael G. Milligan, Finance Professor.
"The stock market is not some coded conspiracy to keep the rich rich and the poor poor. Anyone can learn how to make money in the markets."
I am a full-time college finance professor. For the past 15 years, I have been teaching at California State University Fullerton (full-time) and California State University Northridge (part-time). I have taught and mentored a number of students in careers within the finance industry. Several of my students have gone on to work for Goldman Sachs, PIMCO, Capital One, Green Street Advisors, Edward Jones, US Trust, Import/Export Bank, Deutch Bank, JP Morgan, and more.
Many students have taken the strategies I have taught them and used them for their own trading accounts. Several of these students have achieved high double-digit, and even triple-digit returns.
The stock market is not some coded conspiracy to keep the rich rich and the poor poor. Anyone can learn how to make money in the markets. The first step is to learn the rules of the game. Many investors and traders just don’t know these rules or how the markets function. After you learn the rules, the next step is having strategies that work. Not all strategies work in all markets and economic environments, this is why you will need multiple strategies.
Wall Street does a great job of convincing the public that they are needed and that you cannot make money without them. This is the furthest thing from the truth. Wall Street is not trying to make you rich, they want to gather assets under management and charge their 1-2 percent management fees.
"Watch out for OVERCONFIDENCE! This is the enemy of all investors and traders."
I think the thing to avoid for any and all investors is a closed mind. There are 1,000 different ways to make money in the markets. Be open to other ideas and strategies. Be a lifetime learner.
Watch out for OVERCONFIDENCE! This is the enemy of all investors and traders. The market is always right and the market is the final answer. Have respect and even a fear of the market!
I recommend that investors become avid readers of different strategies and investment books. Some will make sense and some will not. Some will not make sense for several years, and some will never make sense at all, but you will be growing, learning, and honing your skillset.
"Learning how to make money in the markets is the first step towards generational wealth."
The key to being successful in the markets long-term is to:
Know the rules of the markets that you want to trade.
Hone your skillset. I am not saying you have to trade every day, but you need to study and watch the markets every day.
Keep a journal. In your journal, write down every trade you make. Answer these questions: Why did you make the trade? Why did you make/lose money? The only way you will be able to duplicate your success is to know why it was successful. If you do not know why you lost money, then you are doomed to repeat the strategy.
Have a sell strategy. I think the biggest mistake all investors make is not having a sell strategy. When do I close out my positions? The key is to let your profits run and cut your losses.
Trading and investing is the great equalizer. When you open your account, they do not ask what race or nationality you are. Dollars are green. Learning how to make money in the markets is the first step towards generational wealth. With knowledge, we can eliminate these myths and fears that the stock market is gambling. We all have that relative that lost all of his money in the market. Ask yourself this, did my relative really know what he was doing?
I have an Instagram account @ProfessorMilligan and a YouTube Channel @ProfessorMilligan. I use these social media platforms to help individuals learn how to trade and invest. I teach many of the strategies that I have used to make money in the markets and what I have taught my students over the past 15 years. Let’s get in touch!
For any questions or inquiries, reach out to professor Milligan at: