Warren Buffett says read 500 pages a day to get better. That’s a pretty impossible feat for most people including myself (although I’ve never really tried it). All we can do is our best to get a little better every day.
Along the same line, everybody wishes they could have more hours in a day. Unfortunately we can’t. All we can do is get the most out of every second of our day. The most out of every insight we come across. The most out of every trading decision we make. How do we do that?
The answer is build amazing processes that create a strong system for RETAINING information. The slippage in our minds can be extraordinary when you consider how much information we process over the period of a month, quarter, year and beyond.
Here are some of the processes traders could have:
- A process for acquiring new information and retaining that information.
- A process for handling emotions during the trade
- A process for handling winning and losing streaks
- Idea Selection Criterion
- Pre-Trade Planning and Notes
- Trade Management Process
- Trade Review Process
Sure, you can trade and succeed without a great system in place, but those who build a great system will win in the long run.
Trade ’em Well