I read a phrase a long while ago that I sort of dismissed but...

I read a phrase a long while ago that I sort of dismissed but now I reflect back and it makes perfect sense. I can't recall the exact quote or the author but do recall it being a credible writer. Goes something like this:

To be successful on the market you need to lose more than you win. It is through disciplined losing that a feel for the market is gained and important lessons are learned.

What might that mean?

I now accept that to mean it is impossible to have every trade in the green in the timeframe required. Therefore it is important to know when to cut loose, when to let winners run and when to re-enter. If can master that then a greater number of small losses will be greatly outweighed by a small number of huge gains. Net result above market returns.

I was guilty at one time, and perhaps many others are too, of steadfastly holding on to a loss in the belief it will turn a corner next week or next month. I now know not to think of a loss as anything other than a down payment on a never-ending education ( a cost of business). That education provides the backbone of successful investing, not something one ever achieves absolutely but a gradual process of never-ending better decisions.

In my view non of that contradicts my opinion on long-term success of S&G the company, it just acknowledges two things are happening in tandem, short-term market views and long-term company fundamentals.