appeared to be a wave-5 high on Jan. 9 on a keyreversal day. Let's assume our analysis suggests a major bear trendbegan with the Jan. 9 high and we took a multiple short position at ornear the Jan. 9 top. The initial sharp decline and rally is labeled 1 or Aand 2 or B on the chart above. The same wide-range bar is both the lowand high. The intraday chart (not included) shows that the low was madeearly in the day and the high near the end of the day.If the decline were to be an ABC correction, the typical price objectivefor the wave-C would be the 23.89-23.60 price sone. This price zoneincludes where W.C = WA the 50% retracement from the Nov. 6 low,the 61.8% retracement from the Dec, 11 low and the 100% Alternate PriceProjection of the Dec. 6H-Dec. 11L.Crude reached this price zone in the second half of Jan. The shortterm, profit-taking units of the short position should either be covered atthis price zone or the protective stop-loss brought very close to the marketsuch as trailed one tick above the one-day-high
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Short-Term Profit Objective
I
On Feb, 19, the S&P made a reversal day high. Let's assume weconsidered that top as the beginning of a major bear trend. The S&Pdeclined to make a swing low and high that are labeled 1 or A and 2 or Bon the chart above. If the decline were a correction and not the beginningof a major bear trend, the typical price objective for the correction wouldbe 795.70-791.95. This price zone includes where W.C = 100% W.A andthe 50% retracements from the prior two lows (Jan. 28 and Feb. 5) priorthe Feb. 19 high.The S&P slightly exceeded this price zone and reversed sharply up.Profits on the short-term units of a short position would be taken whenthis price was reached or the protective stop-loss brought very close to themarketOn the chart above, I have shown a few days following the March 3low. If a five-wave bear sequence had begun from the Feb. 19 top, theS&P should not trade above the wave-1 low prior to completing the fivewave sequence. Remember the Elliott Wave guideline that wave-4 shouldnot trade into the price range of wave-l.In early March, the S&P traded and closed into the range of wave-1,voiding a five-wave count. Where do you think the logical protective stoploss price would be for the long-term units of a short position? If the S&Ptrades above the wave-1 low and closes above the wave-1 closing low, thefive-wave, bearish impulse sequence is voided. All short positions wouldbe abandoned when this occurred.
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Intermediate-Term Front ObjectiveWhere is the objective for the second unit of a position? It is mostimportant to first have a concept of what we are trying to accomplishand the practical application usually follows with little effort.
Intermediate Term Profit ObjectiveThe intermediate-term profit objective is where time, price andpattern coincide to signal the termination of the trend.
In other words, the profit objective is defined by the market activityparticular to any one situation. While this sounds very vague, it is firmlygrounded in the reality that a market is dynamic and fixed rules for profittaking are not based on the reality of a dynamic market. Dynamic Tradinganalysis methods will usually provide you with a firm opinion of thecurrent position of a market and the high probability objectives of anytrend or counter-trend.We will take a look at just one example of how to be prepared for anintermediate-term position profit objective. The important lesson to learnfrom this example is how to think in terms of identifying a profitobjective. The Putting It All Together chapter will provide a variety ofexamples.
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Intermediate-Term Profit ObjectiveThe chart example below of bonds declining into the Nov. 1994 low wasshown in the chapters on time, price and pattern analysis. We will includeall of the factors here to illustrated the objective for an intermediate-termposition- The previous chapters provided more detail on the position ofbonds going into the Nov. 1994 low.As you will recall, Aug. 2, 1994 was a wave-4 high counting fromthe Oct. 1993 high. In early Oct. 1994, bonds declined to make a widerange, reversal day up on Oct. 7, just two days following a Dynamic TimeProjection with a potential for making a low. Two factors clearly indicatedthat the low was probably not complete on Oct 7.1. Clearly, a five-wave decline had not completed. The decline from theAug. 2, 1994 high to the Oct, 7, 1994 low had all of the characteristicsof the first three waves of a five-wave sequence.2. The Time Rhythm Zone projection for a low did not begin until Oct.26. The second Dynamic Time Projection of Nov. 11-14 fell rightwithin the TRZ for a low.These two factors, time and pattern, strongly suggested that bondswould continue lower to at least late Oct. before completing the declinefrom the Aug. 2 high. The time, price and pattern factors had notcoincided to signal the trend was complete.
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Following the Oct. 18, W.4:5 high, bonds continued to decline tonew lows as anticipated. A price target for the W.5:5 low was 96.1496.00, Bonds had declined to new lows into the Time Rhythm Zone for alow which began Oct. 26. On Nov, 11, right within the TRZ for a low anda Dynamic Time Projection for trend change (Nov. 11-14), bonds madealow of 96,01, precisely within the price target for the low.Time, price and pattern had all coincided to signal the bear trend wasat or near completion. The intermediate-term profit objective had beenmet. Bonds had now reached the ideal target to complete the bear trend.Protective buy-stops on short positions should be brought very close to themarket such as one tick above the prior day's high. The following day,bonds completed a snap-back-reversal day. The bear trend was complete.This is a real example of the power of Dynamic Trading analysis andtrading strategies. Wouldn't it be nice if every market trend unfolded intextbook, symmetrical five-wave structures and completed every trend atthe projected time and price targets? They don't, but that is not importantfor this discussion. What is important is that you understand the conceptof trend and profit objectives. When you understand the concept, you willbe able to judge from most market positions the logical objective for thetrade.A profit objective for the intermediate term position is when thedynamic technical analysis signals that a trend is at or nearcompletion. That is when protective stops are brought very close tothe market.
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Trading Log - An Important Key To SuccessIt is very important that all traders keep a trading log of one form oranother, particularly in the early years of trading until good analysis andtrading habits are formed. The trading log may be in a journal form withentries each day concerning the relevant information for each market thatyou intend to trade or in a chart / data format. It is less important howdetailed is the trading log than whether it is consistently updated on aregular basis.Consistently keeping a trading log will provide several benefits.1. It will help ensure that you keep current on all relevant informationneeded to make a trading decision.2. You will be prepared in advance for the market activity that providesan acceptable trade set up.3. You will have written down in advance the trading strategies toimplement including the specific entry and initial protective stop-lossorders.4. It will facilitate the trader to keep assessed of the market position inorder to manage the trade until closed out.5. You will have a hard copy record of the trade for later review todiscover if you have followed your trading plan and can improveon the analysis techniques, trading strategies, etc.6. A consistently updated trading log will help you to define specifictrading rules and strategies.7. The trading log will be a permanent record of your thoughts, ideas andmotivation for each trade which will help you to learn about yourselfas a trader.If the trading log is kept in a journal format, I suggest keeping aseparate journal for each market or at least for each market group. Thatway it will be easier to follow the line of thought regarding the analysisand trading strategies for each market.1 use and recommend a chart / critical information format for severalreasons. I know the key information that I need to develop an opinion ofthe position of a market and the necessary trade set-up to consider enteringa trade. Since the categories of that information are always the same, it iseasiest to develop a form where 1 will not forget to include the keyinformation, and I can review the critical information quickly.
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In the many years of teaching market analysis and trading strategies tohundreds of traders and prospective traders through my workshops,newsletter and home study course, almost every successful trader that 1have talked to keeps a trading log of one form or another. And, theyreview the trading log on a regular basis for keys to avoid mistakes andimprove trading performance in the future. Virtually none of theunsuccessful or prospective traders keep trading logs. That should tell yousomething,A trading log should include the key information necessary to make atrading decision. It should also include a brief description of your opinionof the market, what will constitute a trade set-up and what are the specifictriggers that will signal a trade.One of the important benefits of a trading log is that it helps to employthe discipline that all of the decisions for trading are made in advance.Once the criteria for a trade are decided upon, it is simply a matter ofwaiting for the market to meet that criteria and the trader then automatically takes action.The following pages include formats for a trading log that are helpfulto prepare for and follow through on a trade. I like to keep all of therelevant information on one page which includes a current chart of themarket. I use three different worksheets which are the Trade Preparationand Initiation, Trade Management and Closed Trade Critique Worksheets.The descriptions of the trading logs begin on the following page.The Putting It All Together Chapter will include completed tradinglogs.
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Trade Preparation and Initiation WorksheetThe purpose of this form is to ensure the trader is aware of all of thecritical information necessary before making a trade. This form iscompleted as a market is approaching a set-up for a potential trade.The relevant technical information is included as well as the "set-up"that is required to initiate the trade and what trading action will be takenif a trade is initiated.Trade #/Date: Assign a number to the trade and date the worksheet. Ifmultiple worksheets are made relative to the one trade, they will be kept inorder.Objective: The objective is a short note of what to anticipate fromthe trade within the context of the analysis. It is often stated in terms ofthe pattern that is developing and may state the relative degree of thetrade anticipated such as short, intermediate or long term.Trend: Included are the three degrees of trend of the current marketposition. If your trading plan includes the restriction of never tradingagainst the intermediate term trend, this will be a reminder in whichdirection you must trade. Always include the date of the pivot eachtrend began.Time (PTPPs}: The Projected Turning Point Periods projected fromthe past pivots. Include the date of the past pivot and the projected dates.Price-Res. (Resistance) and Support: Shows the potential pricesupport and resistance zones and the date of the pivots from where theyare projected.TCS (Trend Continuation Signal): Usually a price level that, ifexceeded, indicates the continuation of the trend. Can also be a timeobjective. If the trend continues beyond the time objective it is a signalthat the trend will continue.TRS (Trend Reversal Signal): Usually a price level against the trendthat, if exceeded, signals the current trend is exhausted and has reversed.Pattern: The current position of the market relevant to pattern.Frequently includes an Elliott wave count. It may be as simple as astatement whether the market is in an impulsive or corrective position.Set-Up: Briefly describes the market activity that is required for a tradeset-up. This could be a reversal signal at a time and price coincidence,break-out of a prior swing pivot or any other criteria that is required beforea trade is acceptable.
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Action To Take: This is the trade that will be taken if the market meetsall of the trade criteria. It includes the details of how many futures oroption contracts will be purchased or sold.Order: The order is the specific order given to the broker. It includes aspace for the order number given by the brokerage company.Filled (D/T/P)?: The date, time and price an order is filled.Canceled fD/T)?: The date and time if the order is canceled prior tobeing filled,initial PS (Protective Stop): The initial protective stop-loss orderincluding the brokerage firm's order number. A position is never openwithout an open protective stop-loss order in the market. If the "Filled"space is complete and there is no open protective stop, quit trading. Noone in their right mind has an open position without an open protectivestop-loss order.Adjust PS (Units 1, 2 and 3): The market activity that will signal anadjustment of the protective stop-loss order Space is provided if the initialtrade was up to three units as the PS on each unit may be differentdepending on the objective of each unit.Commentary (Include Date): It is not necessary to complete a newworksheet each day. Make a brief note each day or just when any relevantinformation changes as to the position of the market or any otherinformation you might want to review at a later date.
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Trade Management WorksheetUse this worksheet to monitor a trade while it is in progress. It includesthe same categories of technical information as the Trade Preparation andInitiation Worksheet. The time projections usually do not change. Theprice support and resistance projections may change as new pivots aremade. The trend continuation (TCS) and reversal (TRS) signals maychange as a market progresses.Tnade # & Date of Worksheet: The Trade ft followed by the worksheet number relevant to this trade and the date the worksheet was firstprepared.Current Position; The current trade position including the market,contract and long or short.PS-OO (Protective Slop-Open Order): The open protective stop-lossorder and its brokerage firm number.Add Position: Describes the market activity that will signal to add tothe initial position.Adjust PS (Units 1, 2 and 3): Describes the market activity that willsignal an adjustment to the protective stop on each position.ST-Obj (Short-Term Objective): The profit objective for the short-termunits of a multiple unit position.Commentary: Enter a brief any day that any additional relevantinformation develops. This section may include dates of reports thatare relevant to this market.
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Closed Trade Critique WorksheetThe Closed Trade Critique Worksheet is completed when all positions of atrade are closed out. A review of each completed trade will be one of themost important factors to help improve your trading performance,The Trade Critique Worksheet includes space for the accountinformation of the trade including entry and exit date and price, net profitor loss, etc. It also includes space for trade comments and, most importantly, lessons learned.Trade # & Date of Worksheet: The Trade # followed by the worksheetnumber relevant to this trade and the date this worksheet was firstprepared.Unit: The trade position of each unit including long (L) or short (S),number of contracts, contract month and market. There is space for threeunits that may have been taken relative to the same trade.Entry / Exit: The date and price of entry and exit of each trade position.P/L (Profit or Loss): The number of ticks profit or loss per contract ofeach position.ft Con. (contracts): The number of contracts of each position.Unit Value: The dollar value of each tick for the contract traded.Com. (commission): The commission and fees charged per contracttraded.Trade P/L: The net trade profit or loss for the position. This considersthe number of contracts, profit or loss per contract and commissioncharged.Total Trade P/L: The total trade profit or loss considers all positionsfor the trade.These worksheets were designed on a spreadsheet. The trade data rowsand columns described above were designed .so the spreadsheet willautomatically calculate the Trade P/L and Total Trade P/L.Trade Comments: Include any comments you feel are necessary toreview the trade.Lessons Learned: This is a very important section. Review what youdid right as well as what could have been done better to improve the trade.You want to both reinforce the correct actions taken so you will continueto take them in the future, as well as review if you did not follow yourtrading plan so you will improve in the future. The Lessons Learnedsection will be your key to review whether your trading plan is acceptable,and if you are following it.
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Success Is A Choice You MakePreparing a series of trade worksheets may seem like a lot of work, butthey will pay big dividends in the long run. They are really not that timeconsuming to initially prepare and keep up-to-date. In most cases, oncethe initial worksheet is prepared, only a brief note is made each day unlessthe market provides new information that requires an adjustment to thetechnical analysis position such as new time or price objectives.The Putting It All Together chapter will include examples ofcompleted worksheets.The worksheet formats described above are only suggestions. Youmay design a format that you find more suitable. The important factor isthat you have the critical information needed to make a trading decision inwriting. You will have a permanent record of your line-of-thought,analysis factors and why you made the trading decision. You may notwant to include a chart with each worksheet, but I find the chart a veryvaluable reference of the market position when the trade was considered.Whether you use the formats described on the previous pages or oneof your own design, one thing is certain, a trading log of some form iscritically important to your success. You will only be able to improveupon your future trading activities by carefully reviewing your past tradingactivities and monitoring your current trading activities. This is a criticalprinciple for the success of any business.If you want to be a success in the business of trading, keep a tradinglog religiously and review it frequently. Remember to Keep in mind;
Almost all consistently, successful traders keep a trading log orjournal in one format or another. Most unsuccessful traders do notkeep a trading log or journal.
Do you want to develop the habits of the successful or unsuccessfultraders? It is your choice! It is your money! If you are committed tosuccess in the business of trading, you will keep a trading log.
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Trading Philosophy, Trading Plan and Trading RulesAll successful businesses are driven by a specific objective which includesa plan of action: how to accomplish the objective. Most traders would say,"my objective is to make a profit." A profit is the outcome of a wellthought out well tested and implemented trading plan.The Trading Philosophy is the general style and objectives of yourtrading business. The Trading Philosophy will describe just what you aretrying to accomplish. The Trading Plan is the fundamental set of rules thatguide your trading decisions. The Trotting Plan will describe the basis ofthe strategies and tactics that will be the guide to the day-to-day activities.The Trading Rules are the specific guidelines which must be met beforea trading action is initiated.It is essential that the trading philosophy, plan and rules be wellthought out and in writing. The business of trading is like any otherbusiness. Its success will not only be contingent on the knowledge ofthe individual, but how well the business is planned. It is a mistakenbelief that most businesses fail in a relatively short period of time becauseof alack of capital.
The Business of Speculation Is Like All Other BusinessesMost businesses fail primarily because of a lack of planning and alack of knowledge of the business and how to manage the business.It is no different with the business of trading. Significant capital isprobably the least necessary component.Each individual trader must develop his or her own trailing philosophy,plan and rules. You will never be successful in the long run by adoptingsomeone else's trading philosophy, plan and rules.
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Trading PhilosophyThe trading philosophy should be in a narrative form and describe:1. The trading time frame. Is the objective to trade short, intermediate orlong-term trades? What is the general time frame considered for eachof these periods?2. The general parameters of the type of activity necessary to indicate apotential trade. Are you only looking to enter on trend-reversal set-upsor breakout trend-confirmation set-ups or both?3. The general parameters of the capital exposure that is acceptable andthe profit objectives.Trading Philosophy ExamplesBelow are a couple examples of trading philosophies. They represent twocompletely different trading objectives and will each have a differenttrading plan and trading rules.The objective is to identify the trading condition set-ups torshort to intermediate term trades. Those that will last from severaldays to several weeks. At least two units will be taken with mosttrades with the objective to take profits at the short-term objectiveon one unit and hold the second unit to the termination of meintermediate term trend.Trend-reversal trades will be entered when the time, price andpattern analysis factors indicate a trend reversal is probable and adaily reversal is made. Trend-continuation trades will be madefollowing a trend reversal.The capital exposure for any one position will not exceed 3%of the account balance. All trades will be held until stopped out ofthe market by the protective stop-loss.This trading philosophy will form the foundation of the trading planand trading rules for short to intermediate term trading where a trade isheld until stopped out. A completely different trading philosophy mightbe:The objective is to identify the main trend and only enter shortterm trades of one to three days in the direction of the main trend,A protective stop-loss is trailed very close to the market and profitsare taken at short-term price objectives.
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This is a completely different trading philosophy with a short-termtime frame and the objective to take relatively quick profits on successfultrades.As with most businesses, you have a better chance of success if youspecialize. It is unlikely you will be successful by trying to be a shortterm, scalp trader as well as looking to trade the long-term trends chatlast several weeks to several months. The analysis techniques and tradingstrategies of each are much different. Almost all successful tradersspecialize in one type of trading.The trading philosophy will provide the objective of what style oftrading you ere trying to accomplish and the general parameters of howyou will accomplish the objective. The trading philosophy examples aboveare just that, examples. II is important for you too think about what yourown trading objectives should be and for you to develop your own tradingphilosophy. This isn't the time to develop paralysis of analysis. Don't gethung-up on the details but take the time to simply stare what you are tryingto accomplish in your trading business.Trading PlanWe move from the very general Trading Philosophy to the more specificTrading Plan. The Trading Plan consists of the fundamental principlesthat guide your trading business. The Trading Plan does not includespecific trade-action rules.An example of a trading plan might include the following:1. The first objective is to protect and preserve capital.2. Only initiate a trend-reversal trade when at least two of the threefactors of time, price and pattern signal a trend-reversal is probableand one of the four daily reversal signals is made,3. Only initiate a trend-continuation trade when at least two of the threefactors of time price and pattern have signaled a trend reversal and oneof the three trend-continuation entry set-ups is made.4. Every open trade must have an open protective stop-loss.5. Trades arc only exited by the election of a protective stop-loss, neverat a specific price objective.6. Never add to a losing position.
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The first objective is to protect and preserve capital. It seems ludicrousthat this rule would even have to be stated. Almost all unsuccessful tradersfocus on the idea of potential profits and ignore the potential for losses.Almost all successful traders are fanatical about limiting losses knowingthat there is no possibility of being profitable or even staying in businessover the long run if capital is not preserved.It is often said, "take care of your losses, and your profits will takecare of themselves." There is a lot of truth to this statement. If you don'ttake care of losses by limiting them, you will not have the capital tocommit to the opportunities to realize profits. The specific guidelines toprotect and preserve capital should be stated in the trading plan such asthe maximum allowable capital exposure per trade.An example is the initial capital exposure per trade shall never exceed3% of the available account equity. In this case, a trade will never beentered if the stop-loss position is further from the entry position thanthe dollar amount equal to 3% of the available trading equity. The capitalexposure rule may be a fixed dollar amount per contract such as $500.The important factor is that you have agreed upon some guideline topreserve capital by limiting losses. Every trading plan must include theguideline to preserve capital by limiting losses.Only initiate a trend-reversal trade when at least two of the three factorsof time, price and pattern signal a trend-reversal is probable and one ofthe four daily reversal signals is made. This trading plan principleconsiders the context of the analysis methodology taught in this book andrecognizes that a market must meet certain technical conditions before atrend-reversal, trade-entry is considered. The trading rules will define theacceptable conditions. This trading plan principle also limits the initialtrend-reversal, trade-entries to a specific reversal pattern. In other words,trades will never be taken at the coincidence of projected time and pricetargets, no matter how strong, without a reversal signal.This part of the trading plan is specifically oriented to the traderbuying bottoms and selling tops when the high probability conditionsfor a bottom or top are met. Almost every trading educator, publisherand advisor teaches to never try to buy the bottom or sell the top andonly enter on an established trend. That is because they do not have thetechnical analysis methods to identify with a high probability the conditions when tops and bottoms are made. Dynamic Traders have thisknowledge and an important part of their trading plan should be to takeadvantage of these unique technical analysis methods.
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Only initiate a trend-continuation trade when at least two of the threefactors of time, price and pattern have signaled a trend reversal and oneof the three trend-continuation entry set-ups is made. This guideline issimilar to the previous one except it addresses trade entries after a trend isestablished and limits the trend-continuation trade entries to specific trendcontinuation set-ups.Every open trade has an open protective stop-loss. If you ever have atrade position without an open protective stop-loss order in place with thebroker, you are not a trader. You're an idiot. If there is a time in your lifewhen you will be hit by a truck, have a heart attack or fall into a coma, itwill he when you have an open position. What if the market movesrelentlessly against your position as you are resisting going down that oneway tunnel toward the tight? Do you want the first words you hear whenyou return to consciousness to be "honey, what's a margin call?''Trades are only exited by the election of a protective stop-loss, never at aspecific price objective. The trading plan must include the rule for how aposition is exited. The exit rule as stated here, requires a trade to only beexited by electing a stop-loss. The specific trading rules will define thespecific position of initial and trailing protective stop-losses. A differenttrading plan may accept profit taking objectives of a fixed dollar amountor percentage gain on the trade,Never odd to a losing position. Adding to a losing position could be onedefinition of insanity. Do two wrongs make a right?A trading plan should clearly define the basic foundation of yourbusiness of trading and the fundamental and general rules mat will guideyour decisions. The trading plan described above is just an example. Yoursmay be more comprehensive, Bui beware of paralysis of analysis. If yourtrading plan covers page after page of rules and guidelines, you'veprobably missed the point that the trading plan is a firm guideline to thedirection you are taking and the general, inviolate rules. It is not a planthat dictates every individual action.Planning is a three stage process that begins from the very generaland works its way to the specific. The Trading Philosophy is a verygeneralized narrative of the direction and objectives of the business. TheTrading Plait is a bit more specific and definitely provides some limitedparameters on what activities will be engaged in. Step three is the TradingRules. The Trading Rules are even mace specific and provide theconditions that must be met before taking a specific trading action.
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Trading RulesThe trading rules are the specific qualifications that must be met beforeany trade action may be taken. All rules are limiting by nature. Rulesalways relate to a condition. The more rules, the fewer conditionsacceptable for a trade action.A mechanical, trading system consists of specific, mathematicallydefined and inviolate rules. Each decision is made by the "system" withoutinput by the user. In chapter one, I expressed my leas than positive opinionof trading "systems" and the absurdity of considering any business couldbe successful without the application of the knowledge and judgment ofthe business owner. So then what do I mean by trading rules?Trading rules as used here are the minimum qualifications that mustbe met before a trade action may be taken whether it is a trade entry,protective-stop placement or trade exit. In other words, a decision willonly be made if a market is in a position where the probabilities forsuccess are in favor of the decision maker. Let's consider a couple ofexamples of trading rules.A initial trade entry is never taken prior to the market making at leasta 50% retracement from what is suspected as the extreme high or low. InElliott wave terms, Traders would only look to buy when either the wave-2or wave-B has made at least a 50% price retracement of wave-1 or waveA. W. D. Gann taught that the "safest time to enter a market is on the firstcorrection to the high or low." What did he mean by "safest?" He meantthe time with the greatest probability of being followed by a fast andprolonged trend. In Elliott wave terms this would be the wave-3.This rule would preclude considering buying the bottom of a beartrend or selling the top of a bull trend. This rule would force the traderto wait for at least some minor confirmation a trend has reversed and to beprepared to buy on the initial correction to the suspected new trend.This rule does not cause a trading action to be taken, but provides theminimum qualifications for a market position before a trade may beconsidered.Another rule might be - The protective stop-loss shall never be placedfurther than one tick beyond the three-day high or low once a market hasexceeded the 100% alternate price projection. This simple rule recognizesthat a market that exceeds the 100% alternate price projection is probablyin an impulse trend that should only have relatively minor corrections untilthe trend is at or near completion. This is the time to trail the protectivestop relatively close to the market.A relatively short-term trader's trading-plan may include a rule such
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as - The protective stop-loss will never be further than one tick beyond theprior day's extreme once a position has reached a $700 profit. This is asimple rule that considers the protective stop-loss should be kept close tothe market position as soon as a minimum, unrealized profit is achieved.For very short-term traders