Study Notes: Market Maker Primer – Trade Psychology & Effective Journaling

These are my study notes from ICT Market Maker Primer – Trade Psychology & Effective Journaling. I’m documenting them for personal review and to share my trading journey.

Original ICT video: https://www.youtube.com/watch?v=QSqIeu9tjek

Trading be exciting, but it’s also challenging. Many new traders lose money because they don’t understand their own emotions. This guide will help you learn about trading psychology and why keeping a journal is so important.

What is Trading Psychology?

Trading psychology is about understanding your feelings when you trade. Your emotions can help you make money or cause you to lose it. Learning to control these feelings is just as important as learning how to read charts.

Common Problems That Hurt Traders

1. Fear of Missing Out (FOMO)

This happens when you see the market moving and think “I have to get in now!” You jump into trades without a plan because you don’t want to miss making money.

How to Fix It:

• Have a clear trading plan written down
• Know exactly what your setup looks like
• Remember: there’s always another trade coming

2. Fear of Losing Money

Nobody likes to lose money, but losses are part of trading. When you’re too scared of losing, you might:

• Look for trading systems that win 90% of the time (these don’t exist)
• Risk too much money on each trade
• Close winning trades too early

How to Fix It:

• Use small position sizes
• Accept that losses will happen
• Focus on making money over time, not on each trade

3. Getting Impatient

You see your trading setup starting to form, but it’s not quite ready yet. You can’t wait, so you enter the trade early. This usually leads to losses.

How to Fix It:

• Wait for your exact entry signal
• Remember that patience makes money
• Find other activities to do while waiting

4. Feeling Not Good Enough

Social media can make you feel like everyone else is a better trader. You see posts about big wins and think you’re failing.

How to Fix It:

• Stay off trading social media if it bothers you
• Focus on your own progress
• Remember that many people online are lying about their results

5. Looking for the “Perfect” System

When you have losing trades, you might think there’s a better trading method out there. You keep switching from one teacher to another.

How to Fix It:

• Pick one method and stick with it
• Give it time to work
• Remember that all trading systems have losing periods

Why Journaling is Important

A trading journal is like a diary for your trades. You write down what you did, how you felt, and what happened. This helps you become a better trader.

What to Write in Your Journal

Before Trading:

• How do you feel today? (angry, sad, excited, calm)
• Are you sick or tired?
• Did something bad happen in your personal life?

During Trading:

• What setup are you looking for?
• Why do you think the market will move this way?
• Take screenshots of your charts

After Trading:

• What actually happened?
• Did your trade work out?
• What did you do well?
• What could you do better next time?

Important Rules for Journaling

1. Be Honest: Don’t lie to yourself about what happened
2. Use Positive Words: When you do something right, say “I’m happy with how I followed my plan”
3. Avoid Negative Words: Don’t write things like “I’m stupid” or “I’ll never learn this”
4. Include Screenshots: Pictures help you remember what you were thinking

The Three People Inside Every Trader

Every trader has three different personalities:

1. The Analyst

• Looks at charts objectively
• Follows the trading plan
• Stays calm during trades
• This is who you want to be

2. The Trader

• Wants to make money
• Gets excited about profits
• Worries about losses
• Sometimes helpful, sometimes not

3. The Gambler

• Takes too much risk
• Jumps into trades without a plan
• Blames others when things go wrong
• This person will lose your money

Your goal is to let the Analyst make the decisions most of the time.

When NOT to Trade

Don’t trade when you:

• Are sick or have a headache
• Just had a fight with someone
• Are worried about money problems
• Feel angry or upset
• Didn’t get enough sleep

Trading when you feel bad usually leads to bad decisions and lost money.

How Your Journal Helps You Improve

When you write in your journal every day, you’ll start to notice patterns:

• You lose money when you’re angry
• You make better trades when you’re calm
• Certain setups work better than others
• You have specific weaknesses you can work on

This information is like gold. It helps you understand yourself as a trader and make better decisions.

Tips for Successful Journaling

1. Make it a Habit: Write in your journal every day, even if you don’t trade
2. Keep it Simple: You don’t need to write a book, just the important stuff
3. Review Weekly: Look back at your week every Saturday or Sunday
4. Look for Patterns: What do your winning trades have in common?
5. Celebrate Success: Write down what you did well, not just mistakes

The Bottom Line

Trading is not just about reading charts and predicting price movements. It’s also about understanding yourself. Your emotions can be your biggest enemy or your greatest tool.

By keeping a trading journal and learning about trading psychology, you give yourself a huge advantage. You’ll make fewer emotional mistakes and more logical decisions.

Remember: every professional trader keeps a journal. If you want to be successful, you should too.

Start today by writing down how you feel and what you plan to look for in the markets. Over time, this simple habit will help you become a much better trader.

Quick Action Steps

1. Get a notebook or create a computer file for your journal
2. Before your next trade, write down how you feel and what you expect
3. After the trade, write down what actually happened
4. Do this every day for one month
5. Review your journal weekly to look for patterns

Trading success comes from understanding both the markets and yourself. Your journal is the key to unlocking both.

Disclaimer: Trading involves substantial risk and is not suitable for all investors. Past performance does not guarantee future results. This content is for educational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making trading decisions.