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"Patience is bitter, but its fruit is sweet." - Jean-Jacques Rousseau |
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Welcome to this week's edition of The Trader's Journal. We're diving into how dopamine drives your trading habits, why managing it can be your real edge, and simple routines to boost focus and balance.
Ready to sharpen your mindset and trade smarter? Let's go. |
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PSYCHOLOGY
Why Dopamine Management Could Be the Real Trading Edge |
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Ever find yourself checking your P&L more than actually trading? You’re not alone - and the culprit might be dopamine, not discipline.
Dopamine is often misunderstood as the "pleasure chemical," but really, it's the anticipation chemical. It's what keeps you refreshing charts, opening your trading app after every small move, or chasing a quick win when you swore you wouldn't.
And in today's hyper-stimulated world - TikTok, Instagram, YouTube, and everything else begging for your attention - your dopamine system is constantly being hijacked. Studies show that unpredictable dopamine hits (think quick wins, likes, matches, news alerts - even losses) can dysregulate your brain's natural baseline.
Over time, this leads to reduced motivation, brain fog, compulsive behavior, and - yep - poor decision-making under pressure. In trading, that's fatal. When your dopamine is fried, your ability to delay gratification, follow your plan, and keep calm in drawdowns drops off a cliff.
The good news?
It's not hardwired. It's learned behaviour - and that means it can be unlearned. Here are a few action steps you can start today to reset your system and take back control.
- Dopamine Fast (1 hr/day): No screens, no music, no stimulation. Just walk, breathe, or do nothing. Let your brain reset.
- Save the Spike: Don't check your phone or charts until after your morning routine. Make the dopamine hit earned, not automatic.
- Chase the Hard Thing: Craving stimulation? Try effort instead. Go for a run, do that annoying task, lift something heavy. Train your brain to want difficulty.
Dopamine isn't bad. But unmanaged, it's the invisible force pulling your attention away - and your edge right along with it.
Sources: psypost.org/dopamine-and-social-media-why-you-cant-stop-scrolling-according-to-neuroscience/ & https://jbiomedsci.biomedcentral.com/articles/10.1186/s12929-021-00779-7
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OPTIMISATION
The 5-Minute Morning Routine That Could Improve Your P&L |
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Most traders start the day in react mode - phone in hand, charts open, caffeine ingested, cortisol up. But a simple 5-minute shift can calm your brain and sharpen your state of mind. Try this instead:
- Hydrate: Brain fog? Might just be dehydration. Drink a glass of water - bonus points if you add electrolytes.
- Sunlight: Step outside. Natural light resets your circadian rhythm (yes, even on cloudy days). You'll sleep better tonight.
- Breathe: 4 seconds in, 6 seconds out - a few rounds is enough.
- Check-in, Write, Plan: How am I feeling? What emotion could sabotage me today? What's my plan? Write it down.
You can always aim for more optimisation. But perfection is the enemy of good. Start with five minutes. No gimmicks.
Pro tip: Use a real alarm clock. That first dopamine hit from your phone can influence your entire day. ⏰
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STAT
Sleep-Deprived? You Might As Well Be Drunk |
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After 17-19 hours awake, your brain functions as if you have a blood alcohol level (BAC) of 0.05% - legally impaired in countries like Australia.
Push it to 24 hours, and your performance matches a BAC of 0.10%.
For traders, that means grinding through on 4-5 hours of sleep isn't just unsustainable - it's dangerous. You wouldn't trade drunk. Don't trade sleep-deprived.
Prioritise rest, and the results will follow. Stay subscribed - we'll cover practical sleep tips in future issues.
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BOOK REVIEW
The Almanack of Naval Ravikant |
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This book distills Naval’s insights on wealth and happiness - treating both as
skills you can train. No fluff, just timeless principles. A few key takeaways are: |
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Wealth Creation: Focus on acquiring specific knowledge, leveraging technology, and owning equity.
Decision-Making: Sharpen your judgment through mental models and lifelong learning.
Happiness: Want less, be present, practice mindfulness, and protect your peace.
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Highly recommended for anyone into self-mastery, entrepreneurship, or just thinking better.
Our rating: ★★★★★ |
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LIFESTYLE
The Lost Third Place (And Why We Need One) |
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First place: home. Second place: work. Third place: ...?
In the past, "third places" were a part of life - cafés, local pubs, parks, book clubs. Sociologist Ray Oldenburg coined the term to describe spaces where people gather just to exist together. No performance. No pressure. Just presence.
But in the modern age, third places have quietly vanished. For many, the entire world has collapsed into two zones: home and work. And that comes with a cost.
Without a third place, we forget how to just… be human. We lose spontaneous conversation, ambient social connection, physical cues, non-performance identity - the stuff that buffers stress and adds texture to life.
Third places protect us from burnout. They widen our perspective and offer something the other two places can't:
grounding.
So what qualifies? Anything social, low-stakes, and regular. A jiu-jitsu gym. A climbing wall. A chess club. A jazz night. A local café where they know your name and don't care what you do.
Don't overthink it. Just find somewhere you can be a person first, trader second. Because this work - high-stakes, high-focus, often lonely - demands balance. And balance isn't built in front of a screen.
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The word of the week is Equanimity.
Equanimity (noun), is defined as
mental calmness, composure, and evenness of temper, especially in a difficult situation.
Here it is used in a sentence:
“when the setup failed, he didn’t flinch - he just closed the trade with equanimity and moved on.” |
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Note: some links may be affiliate links meaning we might earn a small commission at no extra cost to you. It's a simple way to support us and helps us keep sending you these newsletters! :) |
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Prompt:
What would this look like if it were easy?
We recommend you write this down, sit with it, and jot down everything that comes to mind. No pressure, no right or wrong answers - just reflection and inner guidance.
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BROUGHT TO YOU BY
The Traders Club |
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🗣️ Know someone who would benefit from weekly insights and free PDFs?
Invite your friends to receive The Trader’s Journal weekly newsletter by having them sign up at TheTradersJournal.com. |
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Thank you for reading. Have a mindful, positive week.
Happy trading,
The Traders Journal. |
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Feel free to reply to this email with tips, suggestions or feedback for a chance to be featured next week’s issue: hello@thetradersjournal.com |
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