Just like the joint probability of every scammer on YouTube or Twitter being truthful is zero. I rest my case. PS: Not necessarily a criticism of Al, although I'm not a fan myself. Just pointing out your flawed logic.
Cut your losses, ride your winners. This was one of the 1st trading axioms I ever heard as a newbie, but it took me over 10 years to fully understand it to the point where I'm actually doing it consistently. Let's look closer. 1. Cut your losses This is best done by always taking on your minimum size for the initial entry and not giving it too much room. Usually, it's better to take a small loss and re-enter in the area where you stopped out if the original trade idea is still valid. That way, you protected yourself in the case of a big adverse move and you likely improved your entry (for a larger potential gain). The stop needs to be big enough to be outside of noise, but not so big that your original idea is invalidated and it turns into a hope trade. Simple example: If you buy a swing low, your stop should be below the current swing low. If you require a big stop on a trade, it might not be a good trade to begin with, so you can always pass on the trade and wait for that prime entry where your risk (stop) can be fairly small. When the trade starts moving in your favor, you can choose to add to your position if you see the potential of a big move, but not so aggressively that your average price gets too close to the market and stops you out. This way, you can put on big size while still keeping risk in control and bring home the occasional big winner. 2. Ride your winners In practice, this means holding your winners all the way to target or close to it. It's really that simple, but it requires a ton of experience and trust in your methodology (and the market) to be able to do this. Most people mess this up by taking profits as soon as their trading platform flashes some green for a variety of reasons. Putting it all together: If your position size is small and you also know that you can bring home a big win on the next trade or two or three, it should be very easy to cut your losses. It should also be easy because you know from experience how that one big loss will take a lot to recover from whereas a small loss is literally recovered instantly. Cutting losses is usually painful only when your size is very big and that trade means the end of your account or a big dent. It's also painful if you don't know how to bring home big wins as you deep down know that it's not going to happen. You're a hope trader. For most people, if not all, this post will be useless as you can only understand it through experience and those thousands of hours of screentime and struggling. An experienced player may recognize it and nod approvingly. Maybe it will get some newbies to think on it and plant a seed. Who knows.