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Many investors find stop-loss orders (also called sell-stops) intuitively appealing. If you can limit your loss in any given stock to, say, 10%, then other stock holdings that provide large gains will more than make up for stocks where you take modest losses. That sounds great in theory. Yet, while the size of a single position's loss may be limited, they do nothing to prevent a string of successive "Limited" losses. Investors can potentially do better in terms of maximizing long-term average portfolio returns by trading on signals (such as those embodied by the Schwab Equity Rating grades), not price volatility-induced noise.
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