Equipment needed: one pencil and one copy of the text that you will not mind writing in. For example, the version I use for this exercise is a paperback version by Cheng Yi, translated by Thomas Cleary from Shambhala Publishers.
The process is simple in that you find a calm time to read in the text, letting images from your past experience come to mind. I like to read one hexagram per day, slowly letting the text of the hexagram and each line speak to me. At the same time it is useful to keep either your past events/relationships in mind, or current concerns while reading the text. When you find a line of text that fits, you write in any useful information that helps you make a connection between the line and your life. In my book, I will write names of people who behave or who have influenced me in a way described by the text. Sometimes it is memorable characters from books, movies, etc. Sometimes, it is a situation from my past, sometimes from someone else's past. I know, however, that in future readings of the text, when I read my penciled notes I will reconnect with the line's sense - and its message for my life going forward.
As an example of someone else's life illustrated by a line, here is something I noted in my book for I Ching hexagram # 2, The Receptive, line 3 (yin). A section of the text reads: "Because they are in positions of service, it is appropriate that these people hide their own excellence and attribute all good to the leadership, so that there can always be proper order, with the leadership free of malice and the citizenry flexible and compliant." My own writing on this line referred to Bruce Lee at the beginning of his career: "A successful movie was made (Bruce Lee's idea) with him acting in it. He did not get any credit as the creator. " Yes, Bruce Lee appeared in a movie of his own creation, knowing that he was not to get any credit for it. Yet look where his career was to take him years later! Clearly he knew the essence of this line. The value of exploring this line in such a way leads to understanding it and further, to the ability to translate it into your life, when you sense it occurring. After serious study of that line, I am aware of the times in my life when I am working on a project that I would simply be better off seeing to completion and not taking any credit for, no matter how much I have invested in it.
This leads to a parallel application of such pencil work with the I Ching - reading the text with your current phase of life in mind. This means holding in your heart-mind whatever chapter of life you are in: job transition, job satisfaction, relationship issues, a sick pet, car concerns, etc. Hold the most important ones in your mind as you go through the text - all 64 images and lines - in a month or two. Read one or two a day, making notes as you go, and you will find your understanding of your life gets healthier.