Leverage allows you to control a larger position with a smaller amount of capital, but it also increases your exposure to risk. It's crucial to understand the risks associated with leverage and manage them appropriately. Set a maximum risk per trade based on your trading plan and risk tolerance, and avoid over-leveraging your trading account. Limit your leverage to a level that you are comfortable with and that allows you to maintain proper risk management principles.
Remember: Always use stop loss orders on each trade to limit potential losses. A stop loss order is a predefined level at which your trade will automatically be closed if the market moves against you. Set stop loss levels based on your trading plan and risk management strategy, and stick to them. This can help you protect your trading capital and prevent excessive losses that can occur with leverage.
