Any suggestions?

I'm having a very difficult time with one of the kids. I am probably making his problem worse in trying to help him, and it's driving me batty. I love the kid, but he makes it awfully difficult to like him sometimes. Other times, he's the most loving kid in the world. But he gets into this mindset of "I can't be good" and he gets himself in trouble. Then, while he's in trouble (while he's grounded) he gets into MORE trouble, cuz he feels like he can't do anything right, anyway. Thus, of course, he gets in MORE trouble, which just reinforces his feeling that he can't do anything right and that he can't be a good kid. What am I supposed to do? Ignore his bad behavior? I can't do that...but if I keep disciplining him for what he's doing wrong, it just reinforces his negative self image. I just don't know what to do. *insert whine here*