Mark Douglas

Fix: Derive stop-loss placement from market structure, finding the point where failure probability is sufficiently diminished relative to profit potential

Fix: Accept that some level of uncertainty is inherent; define risk and execute systematic trades

Fix: Accept losses as unavoidable; incorporate them into risk management and money management philosophy.

Fix: Recognize that rules are self-created through conscious will, not imposed externally, and that they enable freedom rather than restrict it

Fix: Recognize that rules enable freedom through consistency; invest mental effort in building trading discipline despite natural resistance

Fix: Continue creating purposeful experiences aligned with the principle until it becomes automatic and requires no effort

Fix: Develop mental framework and emotional discipline parallel to technical analysis.

Fix: Accept the risk of loss as inherent before entering trades

Fix: Force yourself to define maximum acceptable loss in advance, creating external structure that prevents self-deception

Fix: Recognize that perspective and psychological issues are the root cause, not lack of market knowledge

Fix: Choose attitude and mindset development as the primary focus; technique becomes easy with correct psychology

Fix: Explicitly acknowledge and factor hidden variables into every component of trading regime

Fix: Commit to executing planned trades and rejecting unsolicited ideas or tips

Fix: Develop genuine psychological acceptance that the trade may be stopped out; understand what is truly at risk beyond just money (being wrong, not being perfect)

Fix: Commit to taking every trade that conforms to the definition of an edge without discrimination

Fix: Maintain risk boundaries and position sizing discipline regardless of winning streaks; expect 'normal losses' even in successful systems

Fix: Target minimum 3:1 risk-reward ratio so profits come even with less than 50% win rate

Fix: Reflect on core assumptions about winning, losing, and market nature to identify and correct errors