[Sniper]

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I don't know exactly what the 7-8% rule is, but could you think of an equivalent 7-8% rule for poker that would be sound? If not, I urge you to question it for securities as well.

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Ed,

With all due respect, this is bad advice for stock market traders/investors. (Unless you are advocating a smaller stop loss) You must have a stop loss, if you hope to make any money long term from the market.

The 7-8% rule, to cut your losses short, comes from William O'neill. "The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you're wrong."

FWIW, as an active trader, I use a 1-2% stop loss rule! This is a very common rule for traders.

As for Poker... You must know when to fold 'em!!! It's all a matter of discipline and patience.