The Mind-Over-Market Journaling Method

Have you ever found yourself wondering why trading seems like a constant uphill battle? Maybe it’s those moments when your emotions hijack your decision-making process, leaving your carefully crafted strategies in the dust. Trust me, I’ve been there. You’re not alone. Every trader struggles with the mental and emotional side of the market.

I’m Jordon, and in this post, I’m going to guide you through a technique that Louise has shown me. It’s practical, simple, and, most importantly, it works. It all starts with journaling. This method can help you overcome the psychological hurdles most traders battle daily. Together, we’ll explore the Morning Journal method, a practice that can not only help enhance your trading performance but also contribute to your overall well-being. Let’s dive in and take back control.

Louise and I recently conducted a survey with traders from all walks of life, and wow did some common struggles emerge! These aren’t just issues for beginners, these are challenges traders at every level face.

Drawdowns: Watching your account balance shrink is painful. It’s entirely human to let this affect your decisions, but unchecked emotions during drawdowns can lead to bad choices.

FOMO (Fear of Missing Out): The fear of being left behind is real - especially when social media seems to hype every win but never the losses. It’s easy to lose sight of your plan when you let fear push you to chase opportunities.

Comparing Ourselves to Others: It’s tough looking at other traders’ progress without asking, “What’s wrong with me? Why am I not there yet?” Trust me, trading journeys are entirely unique, and what works for one might not for another.

Low Win Rate: It’s drilled into us that win rate isn’t everything. But when losses stack up, confidence in even a sound strategy takes a hit.

Lumpy Returns: Every trader knows the feast-or-famine cycle. Big wins might make you overconfident, and the dry spells can throw you into panic mode. It’s all about stability.

Emotional Control: Easier said than done, right? Trading can be an emotional rollercoaster - fear, greed, and frustration often override logic if you’re not careful.

Sticking to the Plan: We’ve all thought, “This time it’s different,” only to regret it later. Deviating from a solid plan in the heat of the moment is one of the fastest ways to destroy long-term success.

Overtrading: More trades don’t equal more profit, and every trader learns this the hard way. Overtrading often leads to stress, burnout, and lower returns.

Adapting to Evolving Markets: Markets change constantly. Strategies that worked last year might fall flat today. Feeling like you’re always behind the curve is exhausting, but adaptability is key.

Ever notice how your first big win feels incredible, but it’s never enough? That’s the hedonic treadmill at work - a psychological principle where we adapt to positive experiences. Soon, we’re chasing the next win just to feel the same rush. Ironically, this pursuit often causes more stress than satisfaction.

Here’s the game-changing realization: how we think (and how prepared our minds are) sets the stage for our trading performance. Traders who prioritize psychological fitness tend to show more resilience and adaptability, which are crucial to long-term success. In short, the stronger your mind, the stronger your trading game.

Now, let’s talk solutions. This is where the Morning Journal comes in. It’s a simple, no-frills way to take control of your mental game before you even place a trade.

The Morning Journal technique has roots in Carl Jung’s journaling practices and was later popularized by Julia Cameron in The Artist’s Way. Louise introduced me to this method in a trading context, and it has been a revelation. The premise is simple: every morning, spend 20 minutes writing down anything and everything that pops into your head - raw, uncensored thoughts on paper. The idea isn’t to create masterpieces; it’s a practice of self-discovery and mental clarity.

While typing is convenient, handwriting provides a deeper brain-to-hand connection. By physically writing, you can connect with your subconscious thoughts more effectively. Start small - commit to 20 minutes a day. You’ll be surprised how quickly the time passes once your pen gets moving.

Research from James Pennebaker at the University of Texas shows that journaling reduces negative emotions and improves well-being. Writing down our thoughts allows us to process them in healthier ways and shift from reactive to proactive decision-making.

Taking a big loss? I’ve been there. Here’s a tangible 7-day journaling approach that helps process and recover from the emotional toll of a tough market hit.

The Morning Journal method isn’t just another tactic. It’s a mindset shift, a way to approach trading (and life) with clarity, emotional strength, and self-awareness. Trading is never easy, but with a stronger mental foundation, you can approach challenges with resilience and confidence.