I want to share the basic terms that every trader needs to know if you’re taking trading seriously.

Let’s start with the basics. Long is when you buy an asset expecting its price to go up and then sell for more. The opposite scenario is short—when you sell with the hope of buying back cheaper. You can make money on both; the only difference is the direction.

Now about protection. A stop is your safety cushion. You place a pending order that automatically closes the position if the price moves against you. It saves your portfolio from big losses when the market behaves unpredictably.

TВХ is simply the entry point into a position—meaning the price at which you open the trade. This is a basic concept, but it needs to be understood clearly, because the entire outcome depends on choosing the correct TВХ.

Take-profit, or TP, is the opposite of a stop. You set an order in advance to lock in profit when the market moves in your favor. When the price reaches the required level, the position is closed and the profit is yours.

A setup is your whole working plan. It includes an entry point (TВХ), a stop, take-profits, and a scenario for how the price should move. These aren’t random trades, but a well-thought-out strategy.

About timeframes: MTF is the lower timeframe, STF is the higher one. Experienced traders look at both, because the picture on different time periods can be different.

And two more important points. A trap is when the market gives a false signal. It looks like the asset will go up or down, you enter, and then the price unexpectedly reverses. This happens often, so it’s important to stay alert.

Correction is simply a pullback of the price against the current trend. If the trend is upward, a correction is a move down, and vice versa. This is normal—not the end of the world.