What is the correct use of Anchor text?

[ellenwillss]

What is the correct use of Anchor text? Does it ever happen that it is over used? There is so much said about this, friends share your opinions here. I want to know how much anchor text is enough.

 

[MikeAdler10]

Anchor text contains a link in a word, whenever you click on that word, You will automatically redirected to that link.

 

[johnvaghela1987]

Anchor text correct use is you use anchor tag 2 to 3 times maximum in one page as say all seo guides.