When you’re just starting to trade, it seems like there are a lot of confusing words. In reality, everything is simple once you look into it.

Basics: long is when you buy an asset expecting the price to go up, and then sell it higher. Short is the opposite—you sell first, and then buy back cheaper. You can make money on both; it’s just a different direction.

Now the most important thing—твх in trading, or the entry point into a position. It’s simply the price at which you opened the trade. All other levels are calculated from this entry point. If you don’t define a clear твх, then all the rest of your trading turns into chaos.

Two main tools for protection and locking in profit are tied to твх. A stop is an order that you place in advance to limit your loss if the market moves against you. When the price reaches this level, the position is automatically closed. Take-profit is its opposite. It’s an order that triggers when the market moves in your favor and you want to lock in profit.

Together, твх, stop, and take-profit form what’s called a setup—a ready, working scenario that you trade by. A good setup includes clear levels for entry, exit, and protection.

A couple more useful terms. МТФ and СТФ are the lower and higher timeframes. If you’re looking at an hourly chart, then the daily chart is the higher timeframe, and the fifteen-minute chart is the lower one. Many traders look at both so they don’t fall into a trap.

A trap is when the market gives a false signal. It seems like the asset is about to soar or drop, you enter, and then the price unexpectedly reverses in the other direction. It’s annoying, but it’s part of the game.

And lastly—correction. It’s simply a pullback of the price in the opposite direction of the current trend. If the trend is upward, a correction is a move down, but that doesn’t mean the trend has broken. Corrections are normal and often provide good entry points.