When it comes to margin trading, risk management is arguably the most important lesson. Your primary goal should be to keep losses at a minimum level even before thinking about profits. Therefore, you must deploy mechanisms to help you survive when the market doesn’t go as expected.
Placing stop losses correctly is very important, and while there is no golden rule for setting a stop loss, a spread of 2-5% of your trade size is often recommended. Alternatively, some traders prefer to set stop losses just below the most recent swing low (provided it’s not so low you’d stand to be liquidated before it triggered).
Secondly, you should manage your trading size and the associated risk. The higher your leverage, the higher your chances of being liquidated. Using excessive leverage is akin to exposing your capital to unnecessary risk.