Question 14—Modifying the 2% Rule
An experienced trader with a $2,000,000 account decides to modify the 2% Rule and cap his risk per trade at 0.25%. He finds a $9 stock which he plans to ride to $12, while putting his stop at $8. The maximum number of shares his Rule allows him to buy is:
1. 2,000
2. 4,500
3. 5,000
4. 12,000
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