Effective risk management is crucial for successful leveraged trading. Traders should develop a risk management plan that includes: 1. Position sizing: Traders should determine the appropriate size of their positions based on their risk tolerance, account balance, and expected return on investment. 2. Stop-loss orders: Traders should use stop-loss orders to limit their potential losses and protect their capital. 3. Diversification: Traders should diversify their portfolio by investing in different markets and assets to reduce their exposure to volatility and risk. 4. Regular monitoring: Traders should monitor their positions regularly and adjust their risk management plan as needed. __________