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Why Tight Stop-Losses Often Hurt Investors – & What Robust Capital Growth Really Requires

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Why Tight Stop-Losses Often Hurt Investors - & What Robust Capital Growth Really Requires

Risk management and prevention concept. Person stopping falling dominoes with yellow blocks spelling

Sandwish/iStock via Getty Images

By Xinyu Xiong

Ask investors how they manage risk, and many will give the same answer: tight stop-losses. Widely viewed as a cornerstone of disciplined risk management, tight stop-losses can sometimes work against investors’ long-term objectives.

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