Normalizing is one of those things that can work for you or against you. Because it increases the signal level, it can also increase the noise on the track, too. So if you have a less than quiet recording it can cause problems.
I normalize on the master bus when I mix down multiple songs in order to help each song produce a similar perceived loudness factor, and I also use it on individual tracks if the recorded signal is so low that I cant use the fader to pump it up enough for the rest of the mix.
Bottom line is if it sounds bad, don't use it. If it sounds good, use it.
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