Prudent stocks offer above average capital appreciation potential along with above average safety. Investors buying Prudent stocks tend to hold them for the long-term, but also sell lackluster performers to improve profits. Therefore, their turnover is somewhat higher than a Conservative investor's, but their portfolio's performance is much better. The use of Stop-Sell prices is advocated strongly when managing stocks with Relative Safety ratings of less than 1.00. Portfolio turnover and commission costs can be substantial, but so can the profits.
Speculative stocks are extremely volatile and demand close scrutiny and frequent trading.
In my view, the use of Stop-Sell prices is mandatory when dealing with Speculative stocks. Turnover and commission costs will be high for traders, but the losses can also be high if one chooses not to sell when necessary. It pays to diversify. That old saw about putting your eggs in a single basket, and watching it carefully makes no sense for the average investor. There are just too many uncontrolled variables in the stock market.