Phase three complacency and laziness cause traders to neglect journaling and checklist discipline, leading to losses.

But sizing and scaling can cause you to fail out of phase three and that hurts. The next thing that can really damage you in phase three is complacency. The problem is phase three is boring. You're doing the same thing. over and over and over again. So it's very easy to get complacent and to get lazy. And what happens is the things that you were doing that got you to where you were, you start maybe not paying as much attention to them. Maybe you're not journaling as much as you used to. Maybe you're being a little bit more loose and fast with some of the things on your checklist. And because you've been doing this for a long time and it's been working, it's very easy for this laziness to creep in. And all of a sudden you've had a few bad months in a row and you're going, well, what's changed?