Relationship of Long Term Gains to Loss Management

[persistentone]

I am looking for any web sites that might help to quantify the idea that long-term gains more closely tie to the ability to manage losses (i.e., cut losses early) than the ability to select winners.  I remember a few years ago seeing famous coin toss experiments done with graduate finance students where nearly every student in the class ended up getting wiped out because of inability to manage bet sizing and inappropriate responses to losses.

 

If anyone has links for pages documenting any of these ideas, I would appreciate the references.