Although this saying makes perfect sense and serves people well on one level, on another level I believe it disempowers people. Let's view this sentiment from a different angle. For me this is high risk, high loss. I equate risk with knowledge, not returns. High risk to me has to do with entering the market place with a low knowledge base.
Risk reduction has to do with making informed decisions from a high knowledge base.
The less knowledge you have the greater the risks you take, no matter what strategies you employ. The higher your knowledge base and the more skillful you are, the more questions you'll ask. You'll know whom to ask questions of and you'll be able to elicit support from knowledgable people. The more knowledge you have the more wisdom you'll be able to exercise and the more strategically aware you'll be. To me risk has to do with your ability to make incorrect choices.