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You might place an order to sell a stock if it falls by, say, 15% from its current price (to a certain price per share). It s tricky, though, because plenty of great long-term investments might temporarily fall by 20% or more, before eventually recovering and going on to new highs. Thus, it s best to not set your stop order too conservatively – or just to not use stops at all, at least for selling. Long-term investors hoping to stay invested in very promising stocks for years should simply expect volatility and ride out temporary downturns.
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