Keeping Losses Small

Catastrophic losses can never be eliminated, but they can be minimized.
This is done by risking one point or less on a trade (for stocks). You cannot
stop a stock from gapping overnight in the opposite direction, but you can
protect yourself intraday with these stops. You will see that taking small
losses is the difference between those traders who make a consistent living
and everyone else.

Jeff Cooper, from Hit and Run Trading II
(M. Gordon Publishing Group,
Malibu, Calif.).