"But there will come a day when he won’t be able to take a small loss, either because he’ll be unable to ( because the stock stopped trading ) or because he just doesn’t feel like it. That day will wipe out all the small profits."


I don't think he would ever ride a stock down based on a feeling. He does not trust his feelings/knowledge and is very disciplined. As far as trading be stopped in his stock, I think his sticking to the highest rated stocks may provide some protection. If it did happen, it might wipe out most of his "small profits," but many of his trades had large profits. If the whole market crashes, he is more likely to be able to cut his losses than traditional investors like me.