Many investors, particularly those who manage their own brokerage accounts and trade aggressively, depend on stop-loss orders to protect their investments. But do stop losses make sense for longer-term investors whose portfolios are managed by financial planners? It depends.

“Most investors are not even familiar with stop losses,” says Walter Pardo, founder and managing partner of Wealth Financial Partners in Basking Ridge, N.J. “Many of them just assume that advisors are automatically going to protect them. That is, if the market goes down, they assume that the advisor will do something on their own to get them out of harm’s way.”

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