Keep It Simple:
You don't need to have over 20 different colours stick with around 7 or 8 so you can remember them easily. Decide what areas you need to highlight and keep the areas basic.
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Supplies:
Highlighters and coloured pens are the best supplies for colour coding. If you are annotating colour post-it notes are also really useful.
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Don't Overdo It:
Keep your normal writing in black and use colour to make the important pieces stand out. Try not to overdo it, you don't want the whole page to be so colourful that you can't find what you need.
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Remember Your Code:
To help you remember the code create a key and stick it on the inside cover of your notebooks or binders. If you use highlighters you can label them with what each colour represents. Eventually you will be able to remember your colour code without referring to the key.