Handbook Get Startedimages.kw.com/docs/1/0/1/101273/1263271835088_Student_Handbook.pdfsuffer if you...

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A Guide to Help You Get Started A Guide to Help You Get StArted

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Trading securities can involve high risks and the loss of any funds invested.

Copyright © 2008 Investools Inc. All rights reserved. Terms of use apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law. Neither Investools nor its educational subsidiaries nor any of their respective officers, personnel, representatives, agents or independent contractors are, in such capacities, licensed financial advisers, registered investment advisers or registered broker-dealers. Neither Investools nor such educational subsidiaries provide investment or financial advice or make investment recommendations, nor are they in the business of transacting trades, nor do they direct client futures accounts or give futures trading advice tailored to any particular client’s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer by Investools, or others described above, of any particular security, transaction or investment. thinkorswim®, Inc. is a FINRA registered broker dealer and NFA introducing broker. thinkorswim Advisors, Inc. is an SEC registered investment advisory firm. Both companies are wholly-owned subsidiaries of thinkorswim Holdings Inc. which is a wholly-owned subsidiary of thinkorswim Group Inc. Member FINRA/SIPC/NFA.

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Tabl

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Con

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s plan Your education 2Welcome letter 6

To Do

What to do After the Workshop 8• Howtochangeyourpassword 9• HowtocreateaGuestAccount(secondaccount) 10• Selectabrokerageaccount 11• HowtousethinkPod™ 11

PreparingforYourFirstWeekasanInvestor 12• CreateawatchlistofstrongstockswithGlobalSearch 12• Howtoexecuteatradeusingthinkorswim Web-basedpaperMoney™ tradingplatform 13

Daily ScheDule

7-StepInvestingFoundationMilestones 15• InvestingFoundationCoursecalendarpages 16

8-StepBasicOptionsMilestones 30• BasicOptionsCoursecalendarpages 31

CommunityTab–UserGroups 48• Whatisausergroup? 48• Howtofindausergroup 48• Howtostartausergroup 49• Howtofindotherstudentsbylocationorsimilarinterests 49

Interactive:Stocks&OptionsClass 50• Descriptionandhowtoregister 50

coaching

HowDoIGetinTouchWithaCoach? 51

HowtoGetReadyforYourFirstCoachingCall 52• Gettingtoknowyourself 52• Activity 52• Listyourinvestingstrengthsandweaknesses 53• Rankyourlevelofrisk 53• Developing"MyInvestingMissionStatement" 55

EngageYourSupportTeam 57• RemembertheFAQpage 59

SampleQuestionstoAskYourCoach 60

RefeRence

• Locatetheonlinecourse 61• LocateSpotlights 61• LocateTradingRooms 62• LocateInvestorTalk* 62• FindVirtualCoaching 63• Findyournextliveworkshop* 63• Registeronline* 63

goalS

SettingGoalsandIdentifyingYourObjectives 64• Activity 65• Investingpersonalityquiz 66• Designingyourfinancialfuture–US 69• Designingyourfinancialfuture–Canada 71• Checklistforstocks 73• Journalforstocks 77• Journalforoptions 81

bibliogRaphy

Quotations 85

* Master and PHD students only

inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST6 1

n o o n e i S b o R n k n o w i n g h o w T o i n v e S T S u c c e S S f u l ly, b u T w i T h e x c e l l e n T i n S T R u c T i o n , a n y o n e c a n l e a R n .

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pRogRaM of high DiSTincTion

(phD)

aSSociaTe inveSToR pRogRaM

MaSTeR inveSToR pRogRaMhow you will learn

Online CoursesTrading Rooms

Coaching

Interactive: Stocks & Options Online Class

4

• InvestingFoundationand BasicOptionsOnlineCourse

• Interactive:Stocks&OptionsOnlineClass

• investor Toolbox® access (12-monthextension)

• VirtualCoaching(12months)• InvestingFoundationandBasic

OptionsTradingRooms (12months)

• InvestingFoundation,BasicOptionsandAdvancedTechnicalAnalysisOnlineCourse

• BasicOptionsWorkshop• AdvancedTechinicalAnalysis

Workshop• Interactive:Stocks&Options

OnlineClass• investor Toolbox® access

(18-monthextension)• One-on-OneandVirtualCoaching

(18months)• InvestingFoundation,BasicOptions

andAdvancedTechnicalAnalysisTradingRooms(18months)

• InvestorTalk(18months)

• BasicOptionsWorkshop• AdvancedTechnicalAnalysisWorkshop• AdvancedOptionsWorkshop• InvestingFoundation,BasicOptions,AdvancedTechnicalAnalysis

andAdvancedOptionsOnlineCourse• Interactive:Stocks&Options,ActiveInvesting:AdvancedTechnicalAnalysis

andHigh-ProbabilityTradingOnlineClass• High-ProbabilityTradingWorkshop(Upgrade)• investor Toolbox®access(24-monthextension)• One-on-OneandVirtualCoaching(24months)• InvestingFoundation,BasicOptionsTrading,AdvancedTechnicalAnalysis

andAdvancedOptionsTradingRooms(24months)• InvestorTalk(24months)• VIPPass(24months)

associate investor program

Master investor program

program of high Distinction (phD)

inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST6 7

DearActiveInvestor,

Welcome to the investools Method®.Congratulationsonyourcommitmenttocontinueyoureducation—adecisionthatcanchangeyourfinancialdestiny,enablingyoutoexperienceaqualityoflifeyoudesireanddeserve.FinancialfreedomCANbeyours.the investor Toolbox®willhelpyoudiscoverhowtopreserveandgrowyourassetsbytradinginthestockmarketinanew,simplifiedway.

TheContinuingEducationProgramprovidesthefollowing:• ExtendedsubscriptiontimeontheWebsite• Additionalonlinecourses• Multipletradingstrategies• Coachingandstudentservices• TradingRoomsWebcasts• Communityforums• Interactive:Stock&OptionsClass

MasterandPHDstudentsalsoreceive:• Liveworkshops• InvestorTalk• One-on-OneCoaching

Weallhaveafinancialblueprintaboutmoney.Wherediditcomefrom?Family?School?Friends?Perhapsfromallofthese.ThegoodnewsisthateveryonecanredefinethatblueprintbylearningtheInvestoolsMethod.Itprovidestoolstohelpyouovercomefear,increaseskillsandinstillconfidenceinallofyourfinancialandinvestingdecisions.Nomatterhowyouapproachthiseducation,thisHandbookwillhelpsimplifyandorganizeyourapproach,andaccelerateyourprogress.Followingtherecommendationsandcounselcontainedherewillhelpyouachievethefinancialbenefitsyouseek. TobeginyourInvestoolsInvestorEducation,followthesesevensteps:

1.Completetheonlinecourse(s)2. familiarize yourself with the investor Toolbox 3. follow this HandbookandcreateaTradingJournal(seesample)4.Studysixto10hoursperweek,onehouraday, plusafewhoursontheweekends5.ListentotheweeklyTradingRoomsWebcasts6.Placeeightto10papertradesperweek.Search,analyze, createwatchlistsandportfolios7. use virtual coaching

Wel

com

e Bepatient.Yourhardworkwillpayoff.Rememberthefour“D’s:”

• TheburningDESIREforfinancialfreedomthatledto• yourDECISIONtocontinueyoureducation,• strengthenedbyDETERMINATIONtochangeyourfinancialfuture• throughaDISCIPLINEDapproachtoyoureducationandtrading.

Manyofourstudentshavesaidtheyfeltandactedasthoughreallifewasabouttobegin,thenletobstaclesgetintheirway,failingtolivethatreallife.Therewasalwayssomethingtobegottenthroughfirst,unfinishedbusinesstoclearup,ajobtodoanddebtstopayoffbeforeinvestmentscouldbemadeinthemselvesandtheirfinancialfuture.Afterallofthosethingswereaccomplishedthen,theybelieved,reallifecouldfinallybegin.Regrettably,theyreportthattheyletobstaclesbecometheirlives! Tohelpyouovercometheseobstaclesandprogressthroughyoureducation,Investoolscreated this Handbook,whichconsistsofsimple,step-by-stepinstructionstogetstarted,includinghandyreferences,guidanceonengagingwithyourCoachingTeam,a25-dayschedule,sampletradingjournalandgoal-settingexercises. Wearedelightedtowelcomeyoutoourgrowingfamilyofactiveinvestors.We’reexcitedforyoutolearnhowtoprosperbytradingthestockmarketinallthreedirections—up,downandsideways.Wewantyoutosucceed.Takeadvantageofourmanysupportandeducationalofferings.

Sincerely,

LeeBarbaCEO,thinkorswimGroupInc.

inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST8 inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST 9

WHATTODOAFTERTHEWORkSHOP

1. How to change your password 2. How to create a guest account 3. Select a brokerage account 4. Create a watch list of strong stocks with Global Search 5. How to execute a trade using thinkorswim Web-based paperMoney 6. Get ready for your first Coaching call (page 52)

Taketimetowriteyourusernameandpasswordhere.

USERNAME: PASSWORD:

1. how to change your password

STepS Select My Account (top-right corner)

Fill in your current password and enter your new password twice. Make sure to write down your new password

Click Update Password. A confirmation window will appear to let you know the change was successful

If you forgot your password, click here


2. how to create a guest account (Second account)

Guestaccountsarefortheprimaryaccountholder’sspouse,familymemberorsignificantother. Tocreateasecondaccount,followthesesteps:

STepS Click on the My Account link on the upper-right corner of the screen

Click on the My Subscriptions link on the left side of the page

Once in the My Subscriptions section, find the section for Guest Access near the top of the page,

and click on Sign Up

TheprimaryaccountholdermustcompletetheformandagreetotheGuestAccountPolicy,which outlineswhoownstheaccountandwhocanadministerit.

Aftertheaccountiscreated,theprimaryandguestholderwillreceivee-mailconfirmationsandthe guestwillreceiveausernameandpassword.Entitlementsareturnedonimmediately,matchingtheprimaryaccount,andwillcontinuetoupdateassoonasyouenrollinadditionaleducation.

3.SelectaBrokerageAccount

Anothercriticalmemberofyourteamisyourbroker.Ifyoudonothaveabrokerageaccount,youshouldbeabletofindafirmthatmeetsyourspecificneeds.Partofbecomingsuccessfulinthemarketisgettingsetupandreadytotraderealmoney.Thiscantakeseveralweeksdependingonyouraccounts,sostarttheprocessnow.Youcanuseanybrokeragefirmofyourchoice.

Whenselectingafirm,evaluateitbyusingthefollowingfourkeycriteria:1. Technology

•Reliableorderexecution•TradeonyourcomputerandalsoviaInternet(downloadversus Web-based)•internet portal •Executeordersviacellphone(PocketPC,BlackBerry)•Anytime,anywhereaccess(Web-basedvs.softwareapplication)

2. customer service•Supportfrompeoplewhoknowhowtoexecuteorders•Nobroker-assistedfees

3.Third-partyrankings•Barron’s

4. Reasonable commissions•Withfullaccesstoallmarkets

ChoosingtheRightBrokerageFirmDuetoourmergerwiththinkorswim,itstradingplatformisimbeddedinallInvestoolseducationalofferingsandlinkedintheinvestor Toolbox®.Asyoulearntoinvestinthemarket,youwillbeusingthepaperMoneyapplicationtotradeonthethinkorswimplatform.BecauseInvestoolsownsthinkorswim,studentswhoopenanaccountwiththinkorswimmayreceivediscountedcommissionrates.However,wewanttomakeitclearthatyoureducationwillnotsufferifyouchooseadifferentbrokeragefirm.

HowtoUsethinkPod™

Designedtoenableinstanttrading,thepowerful,Web-basedthinkPodwidgetisfullyintegratedwithInvestoolsWebapplicationsandInvestoolsOnline™,providingatrulyseamlessinvestingexperience.Youcansearchforstocks,analyzethem,evenbuyorsellthem,withoutsigningintoyouronlinebrokerageaccount.ItalsoworkswiththepaperMoneyapplication. TousethinkPod,followthesesteps:

1. Enter your user name and password and click the Sign In button. 2. Choose whether you want to use paperMoney or your thinkorswim account. 3. Enter a stock symbol.4. Choose whether you want to buy or sell the stock.


5.HowtoExecuteaTradeUsingthinkorswimWeb-basedpaperMoney

OpenapaperMoneyaccountbyfollowingthestepsbelow:

STepS Click on the Investor Toolbox® tab

Click on Portfolio

Under paperMoney, click on Account

Click on the Click here to launch Web-based paperMoney button

Click on the Trading tab

pRepaRing foR youR fiRST week aS an acTive inveSToR

4.CreateaWatchListofStrongStockswithGlobalSearch

STepS Click on Investor Toolbox®

Click on Searches

Click on Global Search. Fill in the criteria in the square boxes

Click on Save and name it

Youhavenowcreatedyourfirstwatchlist.Youwillreferencethiswatchlistallweekfor buyorsellsignals.

Click on the tutorial to watch a streaming video on how to navigate the site.


7-STEPINVESTINGFOUNDATIONMILESTONES

Lesson1–PreparetoBeanInvestor• Onlinecourse• Quizcompletiondate:• TradingRooms

Lesson2–ProtectYourInvestmentCapital• Onlinecourse• Quizcompletiondate:• TradingRooms

Lesson3–StartAnalyzingfromtheTopDown• Onlinecourse• Quizcompletiondate: • TradingRooms

Lesson4–ConductaThoroughFundamentalAnalysis• Onlinecourse• Quizcompletiondate:• TradingRooms

Lesson5–SearchforAdditionalStrongStocks• Onlinecourse• Quizcompletiondate:• TradingRooms

Lesson6–ConductaThoroughTechnicalAnalysis• Onlinecourse• Quizcompletiondate:• TradingRooms

Lesson7–ManageYourPortfolio• Onlinecourse• Quizcompletiondate: • TradingRooms

SummaryFinalExamTestScore %.YoucannowviewaCapstonesessionunderInvesting FoundationTradingRooms

CapstoneInvestingFoundationTradingRoom.Viewminimumof10. (circle # completed)12345678910

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16 17inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST

“ T h e M o R e w e S T u D y, T h e M o R e w e D i S c o v e R o u R i g n o R a n c e . "~ P E R C Y B Y S S H E S H E L L E

DAy 2 : T U E S DAy D aT e

LESSON2-PROTECTYOURINVESTMENTCAPITALCompletetheInvestingFoundationOnlineCourseLesson2.Wearelookingforascore

of100percentonthequiz. ViewanInvestingFoundationTradingRoomWebcast.TofindouthowtogettotheTrading

Rooms,seepage62.

check The MaRkeT anD evaluaTe youR poRTfolioS Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermine

ifanyactionisrequired. Ifatradeorinvestmentisfound

• CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod. AnotherwaytocontactyourcoachisviaLiveChat*,seepage57.• Writeyourentriesinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.Remembertocomplete eightto10papertradesperweek.• Checkexistingtradesandplacestop-losstriggers.• Readnewsaboutyourexistinginvestments.

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“ T o a c h i e v e g o a l S y o u ’ v e n e v e R a c h i e v e D b e f o R e , y o u n e e D T o S Ta R T D o i n g T h i n g S y o u ’ v e n e v e R D o n e b e f o R e . ”~ S T E P H E N CO V E Y

DAy 1 : MONDAy D aT e

LESSON1-PREPARETOBEANINVESTOR CompletetheInvestingFoundationOnlineCourseLesson1.Needhelpfindingit?Seethe

Referencesectiononpage61.Wearelookingforascoreof100percentonthequiz. Makesureyoucomplete“Gettingreadyforyourfirstcoachingcall*,”seepage52. check The MaRkeT anD evaluaTe youR poRTfolioSReviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineifanyactionis

required.Ifyouhavenotcreatedawatchlist,seetheTo Dotab,onpage8.Ifatradeorinvestmentisfound

• CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod. Ifyouarenotsurewhattoask,seetheCoachingtabforsamplequestions.• Writeyourentriesinyourtradingjournal,seepage77.• PlaceatradeinyourpaperMoneyaccount.Executeaminimumof eightto10papertradesperweek.• Spendtimewithyourfamily.

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* Master and PHD only * Master and PHD only


DAy 4 : T H U R S DAy D aT e

LESSON3-STARTANALYzINGFROMTHETOPDOWN CompleteLesson3oftheInvestingFoundationOnlineCourse.

Wearelookingforascoreof100percentonthequiz. BeproactiveandcallyourCoachingTeam*,seepage51.

check The MaRkeT anD evaluaTe youR poRTfolioSReviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif

anyactionisrequired. Ifatradeorinvestmentisfound

• CalltheCoachingHotline*foraffirmation.• Writeyourentryandexitinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.• Checkexistingtradesandstop-losstriggers.• Readnewsonexistinginvestments.

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“ T h e f e w w h o D o a R e T h e e n v y o f T h e M a n y w h o o n ly waT c h . ”~ J I M R O H N

DAy 3 : W E DN E S DAy D aT e

EntertheInvestingFoundationVirtualCoachingforonehourminimum.Remember,youcan joinVirtualCoachinganytimefrom9amto11pmEST,MondaythroughFriday. SeetheReferencesection,onpage63.



• CalltheCoachingHotline*foraffirmation. • Writeyourentriesinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.• Checkexistingtradesandplacestop-losstriggers. • Readnewsonexistinginvestments.

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WatchtheMarketForecastTutorials

STepS Click on the Education tab

Click on Tutorials

Click on Market Forecast in the bottom left of the screenDaily

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LESSON4-CONDUCTATHOROUGHFUNDAMENTALANALYSIS CompleteLesson4oftheInvestingFoundationOnlineCourse.Wearelookingforascoreof

100percentonthequiz. geT ReaDy foR The week aheaD anD evaluaTe youR poRTfolioS CreateanewwatchlistwithGlobalSearch. Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermine

ifanyactionisrequired. Ifatradeorinvestmentisfound

• CalltheCoachingHotline*foraffirmation. ThehotlineisopenMondaythroughFriday,9amto11pmEST.• Recordentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount. Areyouontrackwitheightto10tradesthisweek?• Checkexistingtradesandstop-losstriggers.• Readnewsaboutyourexistinginvestments.

TheSpotlightswillhelpyoufindandunderstandthefunctionsofthe investor Toolbox. ViewatutorialonMarketForecast,seepage21. Remembertospendtimewithyourfamily.

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e“ c o M M i T M e n T M e a n S ‘ T o D e v o T e o n e S e l f u n R e S e R v e D ly. ’ o n c e y o u c o M M i T T o b e i n g R i c h , T h e u n i v e R S e w i l l a S S i S T y o u , g u i D e y o u , S u p p o R T y o u a n D e v e n c R e aT e M i R a c l e S f o R y o u . " ~ T . H A R V E k E R



“ i R e a l i z e D e a R ly o n T h aT S u c c e S S w a S T i e D T o n o T g i v i n g u p. i f y o u S i M p ly D i D n ’ T g i v e u p, y o u w o u l D o u T l a S T T h e p e o p l e w h o c a M e i n o n T h e b u S w i T h y o u . "~ H A R R I S O N F O R D

DAy 7 : T U E S DAy D aT e

LESSON6-CONDUCTATHOROUGHTECHNICALANALYSISCompleteLesson6oftheInvestingFoundationOnlineCourse. WatchaTradingRoomssession.

check The MaRkeT anD evaluaTe youR poRTfolioS Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


• CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod.• Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.• Checkexistingtradesandplacestop-losstriggers.• Readnewsonexistinginvestments.

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“ I N ANy P ROFE S S ION , THREE TH INGS ARE N ECE S SARy: n aT u R e , S T u D y a n D p R a c T i c e . ”

~ A r i S t o t l e

DAy 6 : MONDAy D aT e

LESSON5-SEARCHFORADDITIONALSTRONGSTOCkS CompleteLesson5oftheInvestingFoundationOnlineCourse. WatchaTradingRoomssession. check The MaRkeT anD evaluaTe youR poRTfolioS Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif

anyactionisrequired.Ifatradeorinvestmentisfound

•CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod.•Writeyourentriesandexitsinyourtradingjournal.•ExecuteatradeinyourpaperMoneyaccount.Placeaminimumof eightto10tradesagainthisweek.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

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“ D o n ’ T w a i T f o R T h e S h i p T o c o M e i n ; S w i M o u T T o i T. "~ G A r Y W o o d

DAy 9 : T H U R S DAy D aT e

LESSON7-MANAGEYOURPORTFOLIOCompleteLesson7oftheInvestingFoundationOnlineCourse. WatchaTradingRoomssession.



• CalltheCoachingHotline*foraffirmation.• Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.• Checkexistingtradesandplacestop-losstriggers.• Readnewsonexistinginvestments.

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“ T h e w i l l T o w i n i S i M p o R Ta n T, b u T T h e w i l l T o p R e pa R e i S v i Ta l . ”~ J O E PA T E R N O

DAy 8 : W E DN E S DAy D aT e

EntertheInvestingFoundationVirtualCoachingforonehourminimum.Remember,youcanjoinVirtualCoachinganytimefrom9amto11pmEST,MondaythroughFriday.

MasterandPHDstudents,viewInvestorTalkat9pmEST,seepage62. check The MaRkeT anD evaluaTe youR poRTfolioSReviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


•CalltheCoachingHotline*foraffirmation.Remember,youcanuse LiveChattocontactthecoaches.•Writeyourentriesandexitsinyourtradingjournal.•PlaceatradeinyourpaperMoneyaccount.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

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geT ReaDy foR The week aheaD anD evaluaTe youR poRTfolioS CreateanewwatchlistwithGlobalSearch. Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


• CalltheCoachingHotline*foraffirmation. ThehotlineisopenMondaythroughFriday,9amto11pmEST.• Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.Areyouontrackwith eightto10tradesthisweek?• Checkexistingtradesandstop-losstriggers.• Readnewsonexistinginvestments.

TheSpotlightswillhelpyoufindandunderstandthefunctionsofthe Investor Toolbox. ViewaCapstoneTradingRooms,iftimepermits.

SpenD TiMe cReaTing youR inveSTing plan

STepS Click on Education

Click on Coaching

Click on My Investment Plans

Click on Investools Foundation and choose Create a new plan

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e“ y o u R c o M f o R T z o n e i S i n D i R e c T p R o p o R T i o n T o y o u R M o n e y z o n e . b e w i l l i n g T o D o w h aT ’ S u n c o M f o R Ta b l e . i T ’ S T h e o n ly T i M e y o u ’ R e g R o w i n g . " ~ T . H A R V E k E R


exit ruleS (monitoringactivities,technicalanalysis,ordertypes)

MONEYMANAGEMENT(traderisk,portfoliorisk)

ROUTINES

FIRSTREALMONEYTRADEUSINGTHEINVESTINGPLAN

tArGet dAte (format 00/00/0000)

DATECOMPLETED (format 00/00/0000)

29

SAMPLEOFENTRYRULES

1. Uptrending stock with three green arrows2. Sideways moving stock with three green arrows and a volume surge3. Group rank of 70 or higher4. No overhead resistance

p l a n n a M e

DEFINITIONOFSUCCESS

waTch liST cRiTeRia (searches,fundamentals,industrygroups,marketconditions,routines)

enTRy RuleS (technicalanalysis,ordertypes)

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Lesson1.IntroductiontoOptions• Onlinecourse• Quizcompletiondate• TradingRooms

Lesson2.LongCallsandLongPuts• Onlinecourse• Quizcompletiondate• TradingRooms

Lesson3.SellingCoveredCalls• Onlinecourse• Quizcompletiondate • TradingRooms

Lesson4.LongStraddles• Onlinecourse• Quizcompletiondate:• TradingRooms

Lesson5.VerticalSpreads• Onlinecourse• Quizcompletiondate• TradingRooms

Lesson6.LongVerticals• Onlinecourse• Quizcompletiondate• TradingRooms

Lesson7.ShortVerticals• Onlinecourse• Quizcompletiondate• TradingRooms

Lesson8.ChoosingYourStrategy• Onlinecourse• Quizcompletiondate• TradingRooms

FinalExamTestScore %

CapstoneBasicOptionsTradingRooms. Viewminimumof10(circle#completed)

1 2 3 4 5 6 7 8 9 10

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e“The MeaSuRe of youR SucceSS uSually coMeS Down To who winS The baTTle ThaT

RageS beTween The Two of you. The ‘you’ who wanTS To Take iT eaSy anD The ‘you’

who chooSeS To beaT back whaT STanDS in The way of youR SucceSS – coMplacency.

whaTeveR iT TakeS, coMMiT coMpleTely To youR goalS anD SucceSS will follow."

~ z I G z I G L A R

8-STEPBASICOPTIONSMILESTONES DAy 1 1 : MONDAy D aT e

LESSON1-INTRODUCTIONTOOPTIONS CompletetheBasicOptionsOnlineCourseLesson1. check The MaRkeT anD evaluaTe youR poRTfolioS Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


• CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod. • Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.Placeaminimumofeightto10 tradesagainthisweek.• Checkexistingtradesandplacestop-losstriggers.• Readnewsonexistingtrades.• Spendtimewithyourfamilythisweek.

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“ a j o u R n e y o f a T h o u S a n D M i l e S b e g i n S w i T h a S i n g l e S T e p. "~ L AO - T z U

DAy 1 3 : W E DN E S DAy D aT e

EnterBasicOptionsVirtualCoachingforonehourminimum.Remember,youcanjoin VirtualCoachinganytimefrom9amto11pmEST,MondaythroughFriday.

MasterandPHDstudents,viewInvestorTalkat9pmEST,seepage62.



• CalltheCoachingHotline*foraffirmation.• Writeyourentriesandexitsinyourtradingjournal.• ExecuteatradeinyourpaperMoneyaccount.• Checkexistingtradesandplacestop-losstriggers.• Readnewsonexistinginvestments.

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LESSON2-LONGCALLSANDLONGPUTS CompleteLesson2oftheBasicOptionsOnlineCourse. ViewaCapstoneTradingRoomssessionfortheInvestingFoundationCourse,iftimepermits. check The MaRkeT anD evaluaTe youR poRTfolioS Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


•CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod.•Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

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e“ f i R S T w e f o R M h a b i T S , T h e n T h e y f o R M u S . c o n q u e R y o u R b a D h a b i T S o R T h e y w i l l c o n q u e R y o u . "~ R OY G I L B E R T



DAy 1 5 : F R I D Ay T O S UNDAy D aT e

ViewaBasicOptionsTradingRoomssession.



• CalltheCoachingHotline*foraffirmation.ThehotlineisopenMondaythroughFriday, 9amto11pmEST.• Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.Areyouontrackwith eightto10tradesthisweek?• Checkexistingtradesandplacestop-losstriggers.• Readnewsaboutyourexistinginvestments.

SpendtimeonyourInvestingFoundationCourseTradingRoomsCapstonesession. ViewtutorialonProphetCharts®,seeReferencesection,page36.

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“ l e a R n f R o M T h e M i S Ta k e S o f o T h e R S – y o u c a n ’ T l i v e l o n g e n o u g h T o M a k e T h e M a l l y o u R S e l f. "~ M A R T I N VA N B E E

DAy 1 4 : T H U R S DAy D aT e

LESSON3-SELLINGCOVEREDCALLS CompleteLesson3oftheBasicOptionsOnlineCourse. ViewaBasicOptionsTradingRoomssession. check The MaRkeT anD evaluaTe youR poRTfolioS Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


•CalltheCoachingHotline*foraffirmation.•Writeyourentriesandexitsinyourtradingjournal.• ExecuteatradeinyourpaperMoneyaccount.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

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e“ y o u ’ v e g o T T o g e T u p e v e R y M o R n i n g w i T h D e T e R M i n aT i o n i f y o u ’ R e g o i n g T o g o T o b e D w i T h S aT i S f a c T i o n . "~ G E O RG E H O R ACE L O R I M E R



“ y o u h a v e T o M e e T a l l o f l i f e ’ S c h a l l e n g e S , b i g a n D S M a l l , n o w. b e c a u S e h o w y o u S Ta R T i S h o w y o u f i n i S h . "~ B E R N I E M AC

DAy 1 6 : MONDAy D aT e

LESSON4-LONGSTRADDLES CompleteLesson4oftheBasicOptionsOnlineCourse.



• CalltheCoachingHotline*foraffirmation.Thehotlineisopen MondaythroughFriday,9amto11pmEST.• Writeyourentriesandexitsinyourtradingjournal.• ExecuteatradeinyourpaperMoneyaccount.Placeeightto10tradesagainthisweek.• Checkexistingtradesandstop-losstriggers.• Readnewsonexistinginvestments.• Spendtimewithyourfamilythisweek.

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TolearnhowtouseProphetChartssoftware,followthesesteps:


Click on Tutorials

Click on Unleashing ProphetCharts on the bottom-left corner of your screenDaily

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“ RU L E NUMB E R 1 : N E v E R L O S E MONEy.R U L E NUMB E R 2 : N E v E R F O RG E T R U L E NUMB E R 1 . "~ WA R R E N B U F F E T T


EnterBasicOptionsVirtualCoachingforonehourminimum.Remember,youcan joinVirtualCoachinganytimefrom9amto11pmEST,MondaythroughFriday.

MasterandPHDstudents,viewInvestorTalkat9pmEST.




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“ e v e R y T h i n g c o M e S T o o l aT e f o R T h o S e w h o o n ly w a i T. ”~ E L B E R T H U B B A R D

DAy 1 7 : T U E S DAy D aT e

LESSON5-VERTICALSPREADS CompleteLesson5oftheBasicOptionsOnlineCourse. ViewaBasicOptionsTradingRoomssessionofyourchoice. check The MaRkeT anD evaluaTe youR poRTfolioS Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


•CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod.•Writeyourentriesandexitsinyourtradingjournal.•PlaceatradeinyourpaperMoneyaccount.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

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ViewaBasicOptionsTradingRoomssession. SpendtimeontheSpotlightsessions.



• CalltheCoachingHotline*foraffirmation.Thehotlineisopen MondaythroughFriday,9amto11pmEST.• Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount. Areyouontrackwitheightto10tradesthisweek?• Checkexistingtradesandplacestop-losstriggers.• Readnewsonexistinginvestments.

SpendtimeontheInvestingFoundationTradingRoomsCapstonesessionforyour InvestingFoundationCourse.

WatchtutorialonBasicCoveredCalls,seeReferencesection,page42.

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“ i f y o u c a n D R e a M i T, y o u c a n D o i T. ”~ WA L T D I S N E Y


LESSON6-LONGVERTICALS CompleteLesson6oftheBasicOptionsOnlineCourse. check The MaRkeT anD evaluaTe youR poRTfolioSReviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif


•CalltheCoachingHotline*foraffirmation.•Writeyourentriesandexitsinyourtradingjournal.•PlaceatradeinyourpaperMoneyaccount.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

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e“ S o M e p e o p l e R e g a R D D i S c i p l i n e a S a c h o R e . f o R M e , i T i S a k i n D o R o R D e R T h aT S e T S M e f R e e T o f ly. "~ J U L I E A N D R E W S



“ n e v e R , n e v e R , n e v e R , n e v e R g i v e u p. "~ W I N S TO N CH U R CH I L L

DAy 2 1 : MONDAy D aT e

LESSON7-SHORTVERTICALS CompleteLesson7oftheBasicOptionsOnlineCourse.



• CalltheCoachingHotline*foraffirmationthatyouarefollowingtheInvestoolsMethod.• Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount.Placeeightto10tradesagainthisweek.• Checkexistingtradesandstop-losstriggers.• Readnewsonexistinginvestments.

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Toviewthetutorial,followthesesteps:


Click on Tutorials

Click on Basic Covered CallsDaily

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“ S u c c e S S g e n e R a l ly D e p e n D S o n k n o w i n g h o w l o n g i T Ta k e S T o S u c c e e D "~ J O S E P H R O S S


EnterBasicOptionsVirtualCoachingforonehourminimum.Remember,youcanjoinVirtualCoachinganytimefrom9amto11pmEST,MondaythroughFriday.

MasterandPHDstudents,viewInvestorTalkat9pmEST.

check The MaRkeT anD evaluaTe youR poRTfolioS CreateanewwatchlistfromGlobalSearch. Reviewthethumbnailchartsforstocksonyourwatchlist(s)anddetermineif



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“ T h e n i c e S T T h i n g a b o u T n o T p l a n n i n g i S T h aT f a i l u R e c o M e S a S a c o M p l e T e S u R p R i S e , R aT h e R T h a n b e i n g p R e c e D e D b y a p e R i o D o f w o R R y a n D D e p R e S S i o n . ”~ S I R J O H N H A R V E Y - J O N E S

DAy 2 2 : T U E S DAy D aT e

LESSON8-CHOOSINGYOURSTRATEGY CompleteLesson8oftheBasicOptionsOnlineCourse. ViewaBasicOptionsTradingRoomssession.



•CalltheCoachingHotline*foraffirmationthatyouarefollowing theInvestoolsMethod.•Writeyourentriesandexitsinyourtradingjournal.•PlaceatradeinyourpaperMoneyaccount.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

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ViewaBasicOptionsTradingRoomsCapstonesession.



• CalltheCoachingHotline*foraffirmation.Thehotlineisopen MondaythroughFriday,9amto11pmEST.• Writeyourentriesandexitsinyourtradingjournal.• PlaceatradeinyourpaperMoneyaccount. Areyouontrackwitheightto10tradesthisweek?• Checkexistingtradesandstop-losstriggers.• Readnewsonexistinginvestments.

SpendtimeontheInvestingFoundationCourseTradingRoomsCapstonesession. RegisterforyourInteractive:Stocks&OptionsOnlineClass,seepage50.

Now that you have added a new language to your repertoire, let’s share and exchange with other students.

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“ i n a c T i o n b R e e D S D o u b T a n D f e a R . a c T i o n b R e e D S c o n f i D e n c e a n D c o u R a g e . i f y o u w a n T T o c o n q u e R f e a R , D o n o T S i T h o M e a n D T h i n k a b o u T i T. g o o u T a n D g e T b u S y. ”~ D A L E C A R N E G I E


CompletetheBasicOptionsOnlineCourseandreviewalessonofyourchoice. ViewaBasicOptionsTradingRoomssession.



•CalltheCoachingHotline*foraffirmation.•Writeyourentriesandexitsinyourtradingjournal.•PlaceatradeinyourpaperMoneyaccount.•Checkexistingtradesandplacestop-losstriggers.•Readnewsonexistinginvestments.

You should now be preparing to trade real money. Start small and remember to call the hotline*.

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e“b iRDS of a feaTheR flock TogeTheR. The R ich aSSociaTe wiTh SucceSSful people ; The pooR ofTen aSSociaTe wiTh unSucceSSful people . eneRgy iS conTagiouS. i f you wanT To fly wiTh The eagleS , you’ll have To STop SwiMMing wiTh The DuckS"~ T. HARV Ek ER



HowtoStartaUserGroup

Iftherearenousergroupsinyourareaandyouwouldliketostartone,here’show.PHDstudentscancreateausergroupbydoingthefollowing:

1. Sign in to Investools Online.2. Click on User Groups under the Community tab.3. Click on the link to start a new group.4. Read the User Group Policies and Expectations and the Code of Conduct that is listed on the Community section of the Web site and send an e-mail to [email protected], indicating that you agree to the terms.

Afteryoufollowthesesteps,amemberoftheusergroupstaffwillcontactyouwithmoreinformationonstartingyourgroup.

IfyouarenotaPHDstudent,[email protected] andamemberoftheusergroupstaffwillcontactyouabouthowtogetstarted.

how to find other Students by location or Similar interests

1. While signed in to the Web site, click on the Community tab and create your profile.2. Click on the Find Friends link in the submenu.3. Fill in the blanks as exactly or generally as you wish and click Find Friends at the bottom of the screen.4. Check the box under the friend(s) you’d like to add, and click Confirm.5. Write any message you would like and click Send. This will send your message, as well as a request to be added to their friends’ lists.6. To manage your friends or pending requests, click My Friends on the right of the screen.

COMMUNITYTAB-USERGROUPS

WhatIsaUserGroup?

Ausergroupisagatheringoflike-mindedindividualswhoexchangeideasandthoughtsforthepurposeofsupportandmotivation.Itisnotasubstitutionforyourcoachoreducation,butasupplementtoit.Differentgroupshavedifferentobjectivesandprotocols,asdirectedbytheirgroupleaders.Mosthavesometypeofscheduledweeklyormonthlymeetingsandaforumwherememberscanpostmessagesandexchangeideas.

HowtoFindaUserGroup

STepS Click on the Community tab in the Investor Toolbox®

Click on User Groups, select your state and then click on Search. The leader’s name and

contact information is listed in the search results


HOWDOIGETINTOUCHWITHACOACH?*

HoursofOperation|Monday-Fridayfrom9am-11pmEST

phone number | 1.800.465.1815(Dialyourteam'sfour-digitextensionifyouknowit)

FourConvenientWaystoGetHelpfromaCoach* • CallUs:Getpersonalattentionbytalkingtoacoachdirectly.Remember,thereisnolimit tohowoftenyoucallinadayorweek.Studentswhowanttospeeduptheirlearning processunderstandthatcallingusiscritical. • Watch,ListenandChatwithUs:ThroughVirtualCoachingyoucanwatch,listenand chatallatthesametime.WatchcoachesanalyzetradesthroughourliveonlineVirtual Coaching,available14hoursaday.Justdropinwhenyouwanttolearnbylisteningto questionsaskedbyotherstudents.Orsendinyourowntradequestionandwatchthe coachgotowork. • ChatwithUs:Prefertocorrespondinwriting?Sendusyourquestionsthrough LiveChatandgetaliveresponse*. • E-mailUs:Ifyouareunabletotalklivewithacoach,sendusane-mailsowecan answeryourquestions*.

IntroTalkwithaMemberofyourCoachingTeam*

Duringthisfirstcall,aCoachingTeammemberwillhelpyoustartyourjourneyontherightpath.Together,youandyourcoachwillestablishaplanforyoureducationandidentifywhatresourcesyouneedtocompleteyourCoachingMilestonesandInvestingPlan.Thecallwilltakeupto30minutes.Wewillestablishaplanforhowfuturecallswilltakeplaceandsetgoalsforyoureducation.

RegisterforyourInteractive:Stocks&OptionsClass

YoushouldberegisteredfortheInteractive:Stocks&OptionsClassaftercompletingandunderstandingtheInvestingFoundationCourseandBasicOptionsCourse.Youneedtoapplywhatyouhavelearned.Wearelookingatathree-tosix-monthtimeframefromwhenyoustartedyourprogram. Beforetheclass,pleasemakearrangementsfortheseitems: • CallCustomerServiceat1.800.204.7143toenrollintheInteractive: Stocks&OptionsClass. • Afteryoureceiveawelcomeletter,continuetofollowthesteps. • Takethepretestbeforeyourclassbegins.Thiswillensurethatyouareready forthematerialcoveredinyourclass. • CompletetheInvestingFoundationandBasicOptionsOnlineCoursesbeforestartingyour onlineInteractivesessions.

Prepare…prepare…prepare…beagoodstudent! Coac

hing

Letthecoacheshelpyoubecomeaconsistentandstructuredinvestor.Wearecommittedtohelpingyouaccomplishyourgoals.

* Master and PHD only


HowtoGetReadyforyourFirstCoachingCall*

ThefollowingpageswillhelpyoudefineyourgoalsforyourInvestorEducation.Complete theactivitiesandquizzesbeforecallingyourCoachingTeamforthefirsttime.

GETTINGTOkNOWYOURSELF

Investinginthestockmarketinvolvesbothriskandrewards.Successfulinvestorsunderstandthis,aswellastheirpersonaltoleranceforrisk.Onceyouunderstandyourtoleranceforrisk,youcanbuildaninvestmentplanthatisreliable,automaticandrepeatable,allowingyoutobelessdependentonyouremotions.Understandingyourrisklevelswillhelpreduceyourstress,makinginvestingmoreprofitableandenjoyable.

WhatDoyouKnowAboutEmotionsandInvesting?Tofindout,takethisshortquiz.

True False Emotionsareoftenaninvestor’sbiggestenemy. True False Youmusthaveanextremelyhightoleranceforrisktodowellinthemarket. True False Oneofthebiggestmistakespeoplemakeisthattheydon’tadoptstrategies thatfittheirpersonalities.

Don’t do things with your money that you don’t understand. When it comes to investing, developing your knowledge and experience is one of the surest ways to maximize success.

activityTakeapersonalinventoryasitrelatestobeinganinvestor.Listyourstrengthsandweaknesses.Tobetterunderstandyourinvestingweaknessesandstrengths,askyourselfthefollowingquestions:

• HowdoIreacttobadnewsregardingthemarketorstockIown? • DoIoftengetbuyer’sremorsewhenImakeasignificantstockpurchase? • AmIlookingatthestockmarketasawaytogetrichquick? • WhenIreacttoatensesituation,doItendtorelyonlogicormyfeelings? • AmIquicktomakedecisionsordoIcarefullythinkthingsthrough? • DoIproceedwithcaution,takingcalculatedrisks? • AmIano-holds-barredpersonwholikestogoforit? • HowwelldoIunderstandtherisks? • AmIpreparedtodealwiththeconsequencesofinvesting,forgoodorbad?

ListyourInvestingStrengthsandWeaknesses

STRENGTHS WEAKNESSES

Howcanyouchangeyourinvestingweaknessesintoinvestingstrengths?

Whataresomespecificwaysyoucanleverageyourinvestingstrengthstoreachyourgoals?

RankyourLevelofRiskFirst,rankwhatyouthinkyourrisklevelis.Then,withoutdivulgingyouranswers,asksomeonewhoknowsyouwell,suchasaspouse,partner,closeassociateorfriendtorankyourrisklevel.

Your opinion of yourself (Circle one)12345678910Conservative-----------------------RiskTaker

Someone else’s opinion of you (Circle one)12345678910Conservative-----------------------RiskTaker


Ittakestimeandexperiencetogaugeyourrisktolerance.Overtime,youwillbegintocreateanidentityasaninvestorthatwilldriveyouruniquetradingstyle.Whetheryouconsideryourselfanoviceinvestororaveteran,it’simportantyoudevelopaninvestingstrategythatbalancesyourgoalswithyourtoleranceforrisk.We’llbegindevelopingyourinvestingstrategyinamoment.First,youmustclearlyidentifywhyyouwanttobeinthemarket.

DEVELOPING"MYINVESTINGMISSIONSTATEMENT"

Tobeconsistentandsuccessfuloverthelongterm,youmustcreateapersonalinvestingmissionstatement.Itwillhelpyousetshort-termandlong-terminvestmentgoals. activityThefollowingthree-stepprocesswillhelpyouformulateaninvestingmissionstatement.

1. What do you value most?Makealistofthetopfivethingsonwhichyouplacethehighestvalueinyourlife.Yourlistmayincludefamily,financialsecurity,health,freetime,homeownership,financialfreedom,retirement,knowledgeandsoon.

1

2

3

4

5

2. Why do you invest in the stock market?Theremaybemanyreasonswhyyouinvestinthemarket.Inthespaceprovided,summarizetheprimaryreasonyouinvest.Ifthemainreasonyouinvestinthemarketistomakemoney,askyourselfwhy.Perhapsyouwanttoretirefinanciallysecure,buildyourpersonalwealth,createaninheritancethatcanbepassedontoyourheirs,improveyourcurrentlifestyleandsoon.Ifso,incorporateyourreasonintoyourresponse.

Step 3. When do you want to achieve success?Doyouhaveashort-termorlong-termtimehorizon? Short term Long term

Step 4. Can you measure your success? Yes NoIfso,howwillyoumeasureit?Beasspecificaspossible.Forexample,doyouwanttobuyandholdstockstodevelopwealthoverthelongterm?Ordoyouwanttobecomeanactiveinvestor?Consideryourtoleranceforriskandbalanceitwithyourdesiretobeaninvestor.

Creating an investing mission statement is, without question, one of the most powerful and significant things you can do to increase your success in the long term and bring focus to your investing.

Remember that you are the one who has to live with your investment decisions. No one knows you better than you know yourself; so while it’s useful to find out what others think, when it comes to personal risk, your opinion is the most important.


Example:Yourinvestingmissionstatementmaygosomethinglikethis:To find financial security, quality time with my family and personal satisfaction, I will

• Invest time to learn how to use the tools and techniques that will increase my chances of success now and in the future. • Take responsibility for my financial future and plan now for early retirement. • Follow an investment strategy that balances my risk tolerance with my desire for reward. • Realize that success is a process, not an event. • Balance my investments to avoid having any one loss significantly affect my portfolio. • Pay myself first by saving.

My Mission Statement

CombineyourresponseswithSteps1–4tocreateyourowninvestingmissionstatement.

In order to…

I will…..

By doing….

I will accomplish this by (date)__________

ENGAGEYOURSUPPORTTEAM

AsanInvestoolsstudent,ateamofworld-classinstructors,coachesandeducationcounselorsiscommittedtoyoursuccess.Ensurethatyoutakefulladvantageofthem.Withinfourworkingdaysoftheworkshop,youshouldmakecontactwithyoursupportteamandCoachingTeam.OneoftheeasiestwaystoobtainsupportisthroughtheLive ChatbuttonlocatedoneverypageofInvestoolsOnline.

STepS Click on the Live Chat button in the top-right corner of the home page

Type in your name

When using Live Chat, select from this drop-down menu


Selectionofdrop-downchoicesforLiveChat

Ihaveaquestionaboutneweducationproducts:Toenrollinspecificcoachingprograms

Ihaveaquestionaboutmycurrentonlineeducation:ToobtainsupportfromyourCoachingTeam*forallAssociate,MasterandPHDstudents

IhaveaquestionaboutrenewingtheWebsite:TorenewyourWebsitesubscription.Pleasenotethattoensureuninterruptedserviceofanysubscription-basedproduct,youwillbeproactivelycontactedwithinfiveweeksofexpirationtogiveyoutheopportunitytorenew

IhaveaquestionforStudentServices:Ifyouhavequestionsaboutyouraccount,ordersorotherissuesrelatingtoyouraccount

Iwouldliketoaskmycoachaquestion:ToobtainsupportfromyourCoachingTeam*forallAssociate,MasterandPHDstudents

Iwouldliketoattendaworkshop:Registerforaliveworkshop

IneedsomehelpwiththeWebsite:ToresolveanyWebsite-relatedissues

Ihaveaquestionthatisnotlistedhere:Ifyouhaveaquestionaboutyouraccount,ordersorotherissuesrelatingtoyouraccount

Remember the faq page

Foranswerstofrequentlyaskedquestions,checktheFAQsonInvestoolsOnline.

STepS Click"Help"

Click on the FAQ file of your choice

* Master and PHD only


SAMPLEQUESTIONSTOASkYOURCOACH

Askusanythingpertainingtotheproductsorstrategies.

• There is so much information. Where should I start?• Can you help me practice placing an order with a stop loss? • I am not sure what exit rules to use. What suggestions can you offer for my trading plan?• In a covered call, what strike price should I consider if receiving income is more important to me than the growth of the stock?• In what situations would it be better for me to use a directional options trade rather than a neutral spread trade?• What is a put option?• I am stuck! Can you help me? There is so much information. Where should I start?• I’mlookingatthisstock.Isthisthecorrectentrysignal?• I’mseeingresistanceat$_____.WhatshouldIconsiderformyexitstrategy?• Whatwouldmyprofitbe?$_____.• Withthisportfoliosize,I’mthinkingtobuyXYZnumberofshares.Isthatthecorrectratio?• Iseesupportat$_____price,soI’mthinkingofplacingmystoplossat$_____. Is that the correct level?• AmIfollowingtheInvestoolsMethodcorrectly?• Ismyportfoliodiversified?• Howdotherulesapplytothistrade?• WhathaveIleftout?• DoIhavethecorrectstrikeprice?• DoIhavetherightmonthforthemoveI’mlookingfor?• HaveIdeterminedthecorrectexitstrategy?• HaveIproperlyrevieweddelta,theta,volatility,openinterestandtheoreticalprice?• HaveIproperlydeterminedsupportandresistance?

REFERENCE

locate the online course

LocateSpotlights

Refe

renc

e


Click on Courses

Click on Investing Foundation Course

STepS Click on Investools Spotlights

(bottom right of the home page)

Click on Archives tab


locate Trading Rooms

ThefirsttimeyouaccessaTradingRoomorInvestorTalk,youwillbepromptedtoinstallWebExsoftware,whichwillallowyoutoviewthepresentation.Makesuretoallowpop-ups.

If you cannot complete these steps, call Technical Support at 1.800.204.7143.LocateInvestorTalk*

ThefirsttimeyouaccessaTradingRoomorInvestorTalk,youwillbepromptedtoinstallWebExsoftware,whichwillallowyoutoviewthepresentation.Makesuretoallowpop-ups.

If you cannot complete these steps, call Technical Support at 1.800.204.7143.


Click on Trading Rooms

Click on Investing Foundation


Click on Investor Talk

Click on Investor Talk in left submenu


find virtual coaching

FindyourNextLiveWorkshop*

RegisterOnline*

STepS Click on My Account

Click on My Subsription

Scroll down to see Workshop Certificates


Click on Coaching

Enter Virtual Coaching for Stocks and Basic Options


Click on Workshops

Click on Live Workshop



Setting goals and identifying your objectives

Goingfromwhereyouaretowhereyouwanttobe—requiresaplan.

Webelieveitisimportanttosetandwriteoutspecificgoalsandobjectives.YoumayhavecompletedaDesigningYourFutureFormintheworkshop.Gobackandfilloutanewoneagain(wehaveincludedablankformonpages68-69).ThiswillassistyouintalkingtoyourCoachingTeamtotailoraneducationplanspecificallyforyouthatwillputyouonapathtowardachievingyourgoals.Remembertocreatereasonableobjectives,givenwhereyouaretodayandtakingintoaccountexistingcommitments.AsampleEducationPlanisalsoincludedinthisHandbook.Thecoacheswillhelpyouspecifydatesforeachmilestoneandkeepyouaccountableforcompletingthe plan.

Remember to create reasonable objectives, given where you are today and taking into account existing commitments.

Goa

ls“ a n av e R a g e p e R S o n w i T h av e R a g e Ta l e n T S a n D a M b i T i o n a n D av e R a g e e D u c aT i o n c a n o u T S T R i p T h e M o S T b R i l l i a n T g e n i u S i n o u R S o c i e T y, i f T h aT p e R S o n h a S a c l e a R , f o c u S e D g o a l . "~ M A R Y k AY A S H

SETTINGMYGOALS

Thesemustbewritten,realisticandbasedonastrategy.Inotherwords,youcan’tjusttalkaboutwhatyouwanttodo(e.g.,Iwanttomakemoney).Tomakeyourmissionstatementareality,definehowmuchmoneyyouintendtomake,howlongyouthinkitwilltaketomakeit,andwhatstrategiesandguidelinesyouwillfollowtodoso.Theseareyourgoals.

Bespecificwhenyouwritedownyourgoals.Forinstance,askyourself,“Basedonmycurrentresources,ismygoalrealistic?”Ifyourgoalisrealistic,thenextstepistodevelopastrategythatwillhelpyouattainthatgoal.Thestrategyyouusewilldefinehowyou’llemployyourresourcestoaccomplishyourgoal.

activitySetthreeshort-termorintermediategoalsandonelong-termgoalyouwillachieveasyou completetheInvestingFoundationCourse.Followthegoal-settingprocessoutlinedbelow.

Step1:ListyourgoalsBeginbyaskingyourself,“WhatdoIwanttoaccomplishduringmyInvestoolseducation?” Again,beasspecificasyoucanwhensettingyourgoalsandkeepthemrealistic.

Goal Examples:• Successfullycompleteandgraduatefromthisprogramwithaworkingknowledge ofthetoolsandtechniquesIcanuseforalifetimeofinvesting.• Buildaninvestmentportfoliooffivestocksthatareconsistentwithmyrisks, personal asset allocation and desired rate of return.• Buildmyownsetofpersonaltradingrulesthatareinharmonywithmyinvesting mission statement.

Step2:DefineyourstrategyNext,developastrategytohelpyoureacheachgoal.Ifyourgoalis,“Iwillsuccessfullygraduatefromthiscoursewithaworkingknowledgeofhowtolocate,analyzeandbuystock,”yourstrategymightbe,“Iwillcompletethishandbookwithinthefive-weektimeframe.”

yield

inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST66

Listfourgoalsandthestrategyyou’llusetoachieveeach. Goal1:

Strategy:

Goal2:

Strategy:

Goal3:

Strategy:

Goal4:

Strategy:

Takethisquiztodiscoveryourinvestingpersonality.

Haveyoutradedemotionallyinthepast? Yes No

Haveyoutakenunreasonablerisksinthestockmarket? Yes No

Haveyoutradedstocktipsfromyourcoworkersorneighbors? Yes No

Areyoulookingatthestockmarkettogetrichquick? Yes No

Areyougoodatfollowingrules? Yes No

inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST

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68 69

629100 0508

PERSONAL

First/Last Name Age Occup.

Spouse/Family Member Age Occup.

Ages of your Children

OBJECTIVES | CHALLENGES

If I had more free time, I would

What is your burning desire? What are your goals? What do you want in life and why you are doing this? Be specific:

What are the greatest obstacles to attaining your financial goals? (What’s been holding you back from the success you desire?)

FINANCIAL OBJECTIVES

How much money do you need monthly to be financially independent? $ (Total monthly expenses?)

Total current assets (combine if married) 401(k) $ IRA’s $ Brokerage $ Checking-Savings-CDs $ Real Estate and/or Business Equity $ Inheritance $

Where are you in relationship to your financial goals? (please check one below)

( ) I feel I am ahead in life financially ( ) I feel I am really behind financially ( ) I feel I am where I thought I would be financially ( ) I feel I am somewhat behind in life financially Based on your current assets, personal goals and time remaining to reach your goals, what kind of account growth and strategies do you need? (check all that apply)

( ) Preservation-under 5% ( ) Moderate Growth 5-15% ( ) Accelerated Growth 15%+ ( ) Income Strategies

COMMITMENT

How much time are you willing to dedicate each week to change your financial future? Less than ( ) 2 hrs ( ) 3hrs ( ) 4-6hrs ( ) 7-8hrs ( ) 9-12hrs ( ) 13-15hrs ( ) 16 + hrs

Will you continue with your occupation after you are financially independent? Y N

Name two things that you are willing to give up or sacrifice on your way to financial independence

1. 2.

Note: If you are here, you will have to make drastic changes to overcome future financial challenges!

DESIGNING YOUR FINANCIAL FUTURE U.S.

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Note: If you are here, you will have to make drastic changes to overcome future financial challenges!

DESIGNING YOUR FINANCIAL FUTURE CANADA

PERSONAL

First/Last Name Age Occup.

Spouse/Family Member Age Occup.

Ages of your Children

OBJECTIVES | CHALLENGES

If I had more free time, I would

What is your burning desire? What are your goals? What do you want in life and why you are doing this? Be specific:

What are the greatest obstacles to your attaining your financial goals? ( What’s been holding you back from the success you desire?)

FINANCIAL OBJECTIVES

How much money do you need monthly to be financially independent? $ (Total monthly expenses?)

Total current assets (combine if married) RRSP $ Brokerage $ Checking-Savings-CDs $ Real Estate and/or Business Equity $ Inheritance $

Where are you in relationship to your financial goals. (please check one below)

( ) I feel I am ahead in life financially ( ) I feel I am really behind financially ( ) I feel I am where I thought I would be financially ( ) I feel I am somewhat behind in life financially Based on your current assets, personal goals, and time remaining to reach your goals what kind of account growth and strategies do you need? (check all that apply)

( ) Preservation-under 5% ( ) Moderate Growth-5-15% ( ) Accelerated Growth-15%+ ( ) Income Strategies

COMMITMENT

How much time are you willing to dedicate each week to change your financial future? Less than ( ) 2 hrs ( ) 3hrs ( ) 4-6hrs ( ) 7-8hrs ( ) 9-12hrs ( ) 13-15hrs ( ) 16 + hrs

Will you continue with your occupation after you are financially independent? Y N

Name two things that you are willing to give up or sacrifice on your way to financial independence

1. 2.

72 inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST

checkliST foR STockS DaTe_______

Symbol:_______MarketForecastDOW: Bullish_______Bearish_______Neutral_______ MarketForecastNASDAQ: Bullish_______Bearish_______Neutral_______ MarketForecastS&P500: Bullish_______Bearish_______Neutral_______phase 2 Scores F/EScore_______ price pattern_______ Volatility_______

EntryProfile Trend: up DOWN SideWAYS IndustryGroup: up DOWN SideWAYS Group rank_______ 30-dayMovingAverage up DOWN SideWAYS MACD1Year Green red Stochastic Green Ghost Green red Ghost red Volume150%ofAverage: Yes No Acc/Dist.Current:_______ Green Neutral red DatePurchased:_______ PricePaid:$_______ NumberofShares:#_______ TargetPrice:$_______ ResistancePrice(ceiling) $_______ EntryStopLoss:$_______ SupportPrice(floor)$_______

Didyoubuythisstockforthe longer term or shorterterm?

queSTionS foR coach/coMMenTS/TRaDe RaTionale (Whyareyoudoingthistrade?)

73

74 inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST

checkliST foR STockS DaTe_______

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EntryProfile Trend: up DOWN SideWAYS IndustryGroup: up DOWN SideWAYS Group rank_______ 30-dayMovingAverage up DOWN SideWAYS MACD1Year Green red Stochastic Green Ghost Green red Ghost red Volume150%ofAverage: Yes No Acc/Dist.Current:_______ Green Neutral red DatePurchased:_______ PricePaid:$_______ NumberofShares:#_______ TargetPrice:$_______ ResistancePrice(ceiling) $_______ EntryStopLoss:$_______ SupportPrice(floor)$_______

Didyoubuythisstockforthe longer term or shorterterm?

queSTionS foR coach/coMMenTS/TRaDe RaTionale (Whyareyoudoingthistrade?)

75

76 inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST 77TR

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BIBLIOGRAPHY

Quotations

aristotle. TheMassachusettsTeacher.(Boston,MassachusettsTeachersAssociation,1854),96.

Benedict,ElsieLincolnandRalphPaine(quotebyElbertHubbard).HowtoUtilizeYourMindThroughtheScienceofPractical Psychology.(Whitefish,kessingerPublishing,2006),41.

Blank,Warren.(quotebyJoePaterno).The 108 Skills of Natural Born Leaders.(Norwood,AMACOMDivisionAmericanManagementAssociation,2001),763.

buffet, warren. StockTrader’sAlmanac2005.(Hoboken:JohnWileyandSons,2005),101.

Cook,John(quotesbyHarrisonFord,MartinVanbee,JosephRoss).The Book of Positive Quotations. (Minneapolis,FairviewPress,2007),572,388.

covey, Steven. The 8th Habit: From Effectiveness to Greatness.(NewYork,SimonandSchuster,2004),286.

Eker,HarvT.SecretsoftheMillionaireMind.(NewYork:HarperCollins,2005),61,77,92.

carnegie, Dale. How to Win Friends and Influence People.(NewYork,SimonandSchuster,1981),263.

gilbert, Martin(quotebyWinstonChurchill).WinstonS.Churchill:NeverDespair,1945-1965.(Boston,HoughtonMifflin,1988),216.

gilbert, Roy. The Thinking Option. (UpperSaddleRiver,Prentice-Hall,1996),16.

Lao-tzu. TheWayofLao-tzu.Chinesephilosopher(604BC-531BC).

lorimer, george horace. LettersfromaSelf-MadeMerchanttoHisSon.(Charleston,BiblioBazaar,2007),117.

Mac, berney. MaybeYouNeverCryAgain.(NewYork,HarperCollins,2004),101.

Millman, Dan (quotebyJulieAndrews).TheLifeYouWereBorntoLive:AGuidetoFindingYourLifePurpose. (Tiburon,HJkramer,1995),354.

Rohn, jim. Seven Strategies for Wealth and Happiness. (Melbourne,BrolgaPublishing,2002),49.

Shelley, percy bysshe. The Poetical Works of Coleridge, Shelley and Keats.(London,CrisseyandMarkley,1847),502.

Stone, phil (quotebySirJohnHarvey-Jones).The Ultimate Business Plan.(Oxford,HowToBooksLtd.,2002),55.

Thomas, bob(quotebyWaltDisney).WaltDisney:AnAmericanOriginal.(NewYork,DisneyEditions,1994),68.

Tracy, brian. Goals!HowtoGetEverythingYouWant--FasterThanYouEverThoughtPossible. (SanFrancisco,Berrett-koehlerPublishers,2003),72.

wood, gary. Don’tWaitforYourShiptoComeIn,SwimOuttoMeetIt. (ColoradoSprings,DavidC.CookPublishingCompany,1994),1.

ziglar, zig. Breaking Through to the Next Level.(Addison,HonorBooks,1998),17.

inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST86 inveSToolS coaching hoTline | 1.800.465.1815 MonDay ThRough fRiDay, 9 aM To 11 pM eST

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