Protection of capital is an underlying reality. It is only the extent and the context that varies. What is the primary job of a trader? It is not about predicting which way the market will go. Remember, a trader comes into the market with finite capital. The story is the same whether you are a small trader or a George Soros. At the end of the day, your capital is finite and hence your risk has to be managed to protect your capital. The investor has to focus a lot more on a conviction in his view. More often than not, this conviction has to be against all kinds of odds, which is why investing truly becomes a game of how sure you are about your view.