This is so stupid on so many levels. First, apparently he doesn't understand he should be compensated for risk. There's a thing called a drift, no? The market expects you to earn the risk free rate + be compensated for risk. So if you hold stocks you will generally always be making money. If they beat the S&P on a risk adjusted basis in that timeframe, based on this example, it was pure luck. He should run some monte carols simulations with 10000s of scenarios and 1000s of stocks and he will realize his conclusions much quicker. The example is awful.
Secondly, for some people exit is more important for others entry is. It depends on the skillset. My profit exits are excellent, my stops are OK, but I'm not too patient on the entry (although I have improved this a lot by focusing on it). Each person is different. Also, the only reason stop losses are so important is that it increases the tail and your risk of ruin. It doesn't generally increase your expected value. I think it's important for people to understand this, as it makes it easier to stop out.
