Mark Douglas

Fix: Incorporate technical analysis into trading strategy formulation

Fix: Shift to technical analysis that incorporates observable trader behavior patterns and focuses on current market reality rather than theoretical values.

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: Pre-commit to objective exit rules that override conscious rationalization

Fix: When you encounter apparent contradictions, examine your beliefs first before explaining away the observations

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: Align actual execution with planned trades through discipline and emotional control

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

Fix: Ensure trade execution aligns with predetermined plans

Fix: Treat each trade as one data point in a statistical sample; remain relaxed and committed to your edge

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: Redefine your relationship to market information through mental framework restructuring focused on opportunities

Fix: Reframe all market information as neutral data and perceive it as opportunity rather than threat

Fix: Understand that the market signal hasn't become less risky after wins; your perception of risk has distorted due to state of mind; maintain consistent position sizing