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You should always go for 350+ words in mainstream. We try to stick with 500+ for our websites. But for the content to be optimized you need also a good keyword density of around 2-4%. Stick with that density with any number of words you get for your articles.
We have been testing for a while and short articles don't bring good results, in fact they look pretty spammy if you ask me.. If you are doing a site with some educational stuff, how can you explain a hard subject with lets say 200 words? Sure you can try, but a lot of info will probably be left out.. The Panda update is hitting hard on low quality content sites that is why it is better to get longer, higher quality content just to be on the safe side..
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