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.

Unlike a stock, which represents equity in a company and can be held for a long time, if not indefinitely, commodities contracts have finite lives. The word “contract” is used because a commodities contract requires delivery of the commodity in a stated month in the future unless the contract is liquidated before it expires.