# Trading Basics

BananaEA can automate entries and trade management, but you still need to understand the basic trading terms used by MT4 and the documentation.

## Core Terms[​](#core-terms "Direct link to Core Terms")

| Term        | Meaning                                                          |
| ----------- | ---------------------------------------------------------------- |
| Symbol      | The market being traded, such as EURUSD, XAUUSD, DAX, or NAS100. |
| Timeframe   | The candle interval on the chart, such as M5, M15, or H1.        |
| Lot size    | The position size sent to the broker.                            |
| Stop loss   | The planned exit if the trade moves against the setup.           |
| Take profit | The planned exit if the trade reaches the target.                |
| Spread      | The difference between bid and ask price.                        |
| Drawdown    | A drop from a previous account or equity high.                   |

## Beginner Rule[​](#beginner-rule "Direct link to Beginner Rule")

Start on demo, use conservative risk, and change one setting at a time. If you do not understand why a setting is changed, leave it at the preset value until you can test it safely.

## Next Steps[​](#next-steps "Direct link to Next Steps")

* [Installation And Setup](/banana-ea/mt4/docs/v4/beginners-guide/overview/installation-setup.md)
* [Your First Trade Setup](/banana-ea/mt4/docs/v4/beginners-guide/overview/first-setup.md)
* [Common Mistakes](/banana-ea/mt4/docs/v4/beginners-guide/overview/common-mistakes.md)