Adhering to the strategy of trading quality stocks (meeting at least 4 of 5 selection pillars) will lead to reduced unnecessary and outlier losses, improved trading accuracy, a better profit/loss ratio, increased consistency, a stronger track record, enhanced self-confidence, the ability to use larger share sizes, and ultimately more profit for a trader.
"By trading stocks that meet four out of the five pillars of stock selection at a minimum, invariably you're going to reduce unnecessary losses. These outlier losses that are sometimes really big that come from trading lowquality stocks, those are going to be gone. So now your accuracy will improve because you're cutting out some of those big losses and your profit loss ratio will improve because you're cutting out those big losses. And that in turn feeds consistency. Now, when you have better consistency, you've got a stronger track record, which improves your self-confidence, which then makes you feel more confident taking bigger share size, which means you're making more money."
