September 4, 2005
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Studies have shown that you should never risk more than 2% of your float on any trade. Why 2%? Well, in fact, many penny stock trading professionals will tell you that 2% is too much. They`ll risk 1% or even as little as a quarter of a percent on any trade. Whatever percentage you pick, the idea is to ensure that no one trade is really going to affect your penny stock trading float, positively or negatively.