The essentials
Risk management starts with deciding how much capital a single idea can lose. Position size should follow that budget and the distance to your invalidation price, rather than a desired profit target.
What to consider
Stops are execution instructions, not insurance. Gaps and thin liquidity can produce worse fills, while leverage can trigger liquidation before a planned exit. Correlated positions can multiply exposure.
Put it into practice
Write down entry, exit and maximum loss before trading. Review outcomes periodically and avoid increasing size simply to recover a loss.