Setting up a proper risk management plan requires careful consideration - firstly, decide what percentage (or amount) you would like allocated towards each trade before entering into any positions; this will ensure that no single trade has too large an impact upon your account balance should things go wrong during its duration; secondly, determine where exactly these stop losses should be placed relative to current prices; this ensures they remain effective even if there is significant volatility during its duration; finally, consider whether trailing stops might also provide additional protection against sudden changes in direction without sacrificing potential gains from favourable moves either way throughout its lifetime.