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I disagree a little with a few statements.

There is a famous proof that some economists got a noble prize for that shows diversification reduces all risks except market risks i.e. market goes up and down. This can be protected from using options.

Secondly, though risk can't be fully quantified and analysis can be somewhat subjective, it can be estimated.

Stock picking relies on estimating competitor and environmental risks and their effect on future profits and estimating whether the market has under or over compensated for these risks. A good stockpicker who uses technical analysis as a check can do very well.

There are many ways to obviate risks and many of those ways result in giving some of the gains up. e.g. take diversification, if you follow this route to the nth degree then you will only get market returns.

Stop losses cost in transaction fees.

Options cost and can limit returns.