May 26: The 2 Percent Rule Can Explode Your Profits But You Need To Follow this Warning
Studies have shown that you should never risk more than 2 percent of your float on any trade. Why 2 percent? Well, in fact, many professional traders will tell you that 2 percent is too much. They`ll risk 1 percent 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 trading float, positively or negatively.

You’ve now learned what the stock market is and a little bit about the principles behind the stock market, but how do you actually go about buying stocks? Thankfully you don’t have to go down into the trading pit yelling and screaming your order. The stock market is easier than that.