If you're just starting to understand trading, then a trader's dictionary is your best friend. Let me share some basic terms that you'll definitely encounter in the market.

Let's start with a situation where you've opened a position, but it went against you. A locked-in trader is a trader who is in a losing position and is waiting for the price to return to the breakeven zone or even turn profitable. I know this feeling firsthand.

Now about volatility — high dynamics of price changes over a short period of time. In volatile markets, money is made quickly, but it can also be lost just as fast. It’s a double-edged sword.

To trade large amounts without having that much capital, leverage is used. Essentially, it’s a loan that the exchange gives the trader to make a deal on a larger amount than their own capital in the account. A powerful tool, but it must be respected.

Now about false breakouts and penetrations — things that are often confused. A false breakout is when the price passes a certain level on the chart (support, resistance, an important level, etc.), and then returns back with the same or one or two candles. Like a false breakout.

A breakout is something entirely different. Here, the price passes a level and stays beyond it. Usually, when breaking strong levels, the price later confirms the movement from the other side.

Regarding the trend, a trend reversal in a long position is a breakout with confirmation of the last local maximum on the chosen timeframe. The opposite is a trend reversal in a short position, where we see a breakout with confirmation of the last local minimum.

This is a basic trader’s dictionary. Of course, there are many more terms, but these basics will help you navigate market movements.