If you’re just starting to understand trading, you’ve probably heard these terms and don’t quite know what they mean. Let’s break it down.

Let’s start with the basics. **Long** is when you buy an asset expecting it to rise in price. **Short** is the opposite strategy: you sell, expecting the price to fall so you can buy back cheaper later. That’s the foundation of all speculative trading.

Now about risk management. **Твх** is the entry point of a position—that is, the price at which you open the trade. But opening is only half the job. You also need to know where to close. For this, there are two tools: **stop-loss** and **take-profit**. **Stop** is an order that automatically closes your position if the market moves against you. **Take-profit (TP)**—on the other hand—locks in profit when the price reaches the required level.

All of this package—**твх**, stop, and take-profits together—is called a **setup**. It’s a ready-made trading scenario that you plan in advance.

It’s also important to understand what happens across different time scales. **МТФ** (lower timeframe) refers to smaller charts, while **СТФ** (higher timeframe) refers to larger charts. Experienced traders look at both to avoid getting trapped.

A **trap** is when the market gives a false signal. It looks like the asset is about to surge or drop, but then it unexpectedly reverses direction. If you get caught by this, losses are guaranteed.

And lastly—**correction**. It’s simply a price movement against the current trend. If the market was rising and then pulled back a bit, that’s a correction. A normal thing—no need to panic.