The ABC’s of Risk Management | DailyFX: "How to Prevent Pit-fall C:Avoid excessive levels of leverage. Many professional traders attempt to keep their leverage under 10:1, meaning that they are taking on positions less than $10,000 for every $1,000 in their trading accounts. Some traders take this a step further (such as those observed in the Traits of Successful Traders research) by using smaller levels such as 5:1 (taking on positions less than $5,000 for every $1,000 in their trading accounts). The table below will outline some of the more popular Leverage ratios with amounts that traders can utilize in an attempt to stay under the 10:1 leverage amount:"
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