1. What does it mean to “go long” or “go short” in Forex?
Going long means buying an asset because you expect its price to rise.
Going short means selling an asset because you expect its price to fall.
In both cases, you’re trading the price movement — not owning the asset itself.
2. What is the purpose of technical analysis?
Technical analysis helps traders make decisions by studying price charts and patterns that tend to repeat. It uses tools like candlestick charts, trendlines, support and resistance levels, and technical indicators.
3. How do support and resistance work?
Support acts as a floor — a price level where the market often stops falling and starts going up.
Resistance acts as a ceiling — a price level where the market often stops rising and starts going down.
Traders often use these levels to decide when to buy or sell.
4. How does fundamental analysis differ from technical analysis?
Fundamental analysis focuses on why prices move by looking at economic data (interest rates, inflation, employment) and world events (political changes, disasters, statements from leaders). Technical analysis focuses on what is happening on the chart.
5. What are Stop-Loss and Take-Profit orders for?
Stop-Loss (SL): Closes a trade automatically if the price moves against you, limiting your loss.