“Formal education will make you a living, self-education will make you a fortune“. The quote is one of many from Jim Rohn. He was an American entrepreneur, author and motivational speaker. Rohn’s book, published in 1991, is titled Five Major Pieces to the Life Puzzle and it describes what he considered to be the 5 components of success: how you think, how you feel, what you do, measure often to see if you are making progress, and lastly, the kind of life you can make for yourself out of the first 4 pieces.
I underlined the 4th piece because of its relevance to a feature in BuySelliQ that is of vital importance but often overlooked by users. The feature I’m referring to is NOTES. It’s also called a trading diary and is used by every successful trader, operative word being “successful”.
Let’s assume for the sake of this discussion, that you are either new to investing or you have not used NOTES or a trading diary. Keeping a diary can be difficult because it requires discipline, motivation, and a little extra time. But if you don’t take advantage of this vital tool, you will rob yourself of the “self-education” that Rohn says “will make you a fortune”. Mediocrity is not the goal we set out to achieve.
At BuySelliQ the NOTES feature is right next to the chart of the symbol so you are able to record any relevant information, for future reference, that only you will see and control. What type of information is important is up to you but most traders record information about the trade. What was bought, at what price and for what reason. Did you act on a tip? Was a news related event involved in your decision? Write as much or as little as you want. Over time you will develop a style and know what is important.
The reason for recording your motivation has value because: (a) if you acted on a tip, how did it work out? (b) if the purchase was due to news, what was the type of news and was it successful? (c) did you buy JUST to be active? All good information because you will refer back to your notes and learn what was done correctly or incorrectly.
Always record if you followed the dots. Did you buy or sell on a trend change or did you wait. Write down how it worked out and your thought process. The same rules apply to the sell side as the buy side because you need to learn from your winners as well as your losers. What was done right or wrong in each trade; did your emotions get in the way of a sound decision?
Taking NOTES will shorten your learning curve, improve your skills and give you greater financial freedom. As one trader stated, making mistakes is part of investing. Making the same mistakes will take you out of the game.