There are 4 possible outcomes of a trade:

• big winner
• small winner
• big loser
• small loser

Eliminate 1 of those...and your better off than 90% of all other traders or investors.

Interestingly the hard part of this is not for everybody the same. Some have difficulties to pull the emergency break and stop the loss before it's getting big, while others fail at letting profits ride.

So you might say, easy thing, I will eliminate the big loser and in reality you keep your big winners in check. Concentrating on small moves which is necessary for applying a hard stop loss rule makes you blind for the bigger picture - the chance of the big run.