The Safeguards

To operate effectively in the trading environment, we need rules and
boundaries to guide our behavior. It is a simple fact of trading that
the potential exists to do enormous damage to ourselves—damage
that can be way out of proportion to what we may think is possible.
There are many kinds of trades in which the risk of loss is unlimited.
To prevent the possibility of exposing ourselves to damage, we need
to create an internal structure in the form of specialized mental discipline
and a perspective that guides our behavior so that we alwaysact in our own best interests.