Write, Analyze, Repeat: The Formula for Successful Investors

Beginners often act on emotions, opening and closing positions impulsively, reacting to rumors or short-term news. Experienced traders operate differently: they have pre-written rules, record every trade, take analytical notes, and maintain strict tracking of everything happening in the market. This approach minimizes mistakes, improves discipline, and allows building a strategy on a long-term basis.

Here’s how this works in practice for trader Greg Morton:

1. Pre-written Trading Rules
   Greg determines in advance when to buy, when to sell, and where to set stop-loss and take-profit levels. These rules protect him from panic, unnecessary emotions, and haste. Clear criteria allow him to act consistently even in stressful situations when the market moves sharply.
2. Short Notes for Each Trade
   After closing a position, he writes just a few lines: what worked, what didn’t, what mistakes were made, and what to watch for in the future. This practice allows him to analyze his actions, identify systematic errors, and avoid repeating them. Gradually, a knowledge base forms about his own behavior in the market.
3. Simple Excel Table
   Greg maintains a table that tracks current prices, stock movements, overbought and undervalued levels. This helps quickly understand which assets have grown too much and are not worth buying, and which are still in a normal range and potentially attractive for entry. The table makes information visual and supports informed decision-making, rather than relying on impulsive signals.
4. Quick Market Assessment
   He uses simple indicators, such as the 10-day and 21-day moving averages. When the 10-day average is above the 21-day, the market is considered strong; when below, it is weak. This approach helps understand the overall trend without getting distracted by noise and short-term fluctuations.

Write, Analyze, Repeat: The Formula for Successful Investors
Practical steps you can implement today:
• Write down your personal trading rules and follow them strictly.
• Keep a mini-journal of every trade, recording results and insights.
• Create a simple table to track stocks and other assets.
• Avoid buying stocks that have already risen too much and are at the peak.

Small steps and a systematic approach build true discipline. In the long term, it is discipline, not luck or “intuition,” that determines market success. Consistent recording, analysis, and structured tracking create the foundation for stable, profitable trading and help minimize emotional mistakes that often destroy the capital of beginners.