Welcome Students

1. Welcome Students Professional Trader Day One Beta Version

2. Your Course Instructor Your Instructor for the course

3. Disclosure Disclosure Acknowledgement This course of instruction will prepare you to actively invest / trade securities and/or other financial instruments only for your own account at an appropriate financial firm which utilizes the electronic transmissions of securities and other financial instruments to execute trades for its customers. This course is not preparation to be a Licensed Broker in the financial industry. Representations: Student acknowledges that Online Trading Academy has made no representations or warranties other than those expressed herein; and Online Trading Academy specifically disclaims any other representation or warranties. Moreover, Student recognizes and acknowledges that individual performance depends upon the individual skills, time availability and dedication of each Student in the training program. This Agreement represents the entire understanding and supersedes all prior statements, agreements and understandings, if any, either oral or written. Moreover, the Online Trading Academy training program should not be construed as a recommendation or an offer to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and /or Registered Investment Advisor. Neither Online Trading Academy nor its representatives are licensed to make such advisements. All purchasers of the Online Trading Academy training programs or products are encouraged to speak with a licensed representative of their choice regarding the appropriateness of investing/trading or of any particular investment/trading strategy. Risk Disclosure: No offer on our part with respect to the sale or purchase of any securities is intended or implied, and nothing contained herein is to be construed as a recommendation to take a position in any market. It is possible that at this date or some subsequent date the officers, directors and/or shareholders of Online Trading Academy and its affiliates own securities, or buy or sell securities mentioned in this presentation or those not so mentioned. The intent of the information is for instructional purposes only. The material presented herein has been obtained or derived from sources believed to be accurate, but we do not guarantee its accuracy. All trading involves high risk; past performance is not necessarily indicative of future results. There have been no promises, guarantees or warranties suggesting that any trading will result in a profit or will not result in a loss. The content of this course was created and is owned, in its entirety by Online Trading Academy. Any reproduction, duplication, copying and distribution of this course content without the expressed, written consent of Online Trading Academy is strictly prohibited.

4. Student Care To maximize your learning experience… • This Class is for You. Feel free to ask questionsregarding the current discussion topic. • We strongly promote community. Our classoperates as a team learning to trade. Feel free tohelp each other during trading-lab sessions. • During lectures, please turn monitors off and refrain fromside-bar conversations in order to minimize distractions foryour fellow students. • Make sure your phone is in “silent mode” during class time. • Breaks are taken regularly. Please return promptly in order to not miss any part of the class. • Classroom temperature can be chilly. Keep a sweater nearby.

5. Compliance Policy Statement • To ensure that we provide an exceptional learning environment for all students, please abide by the following guidelines: • Recordings: Courses or any portions thereof may not be recorded in audio, video or any other format. • Classroom Activity: • Use of personal laptops or other electronic devices is prohibited in the classroom. • Please do not download any programs or applications on classroom computers. • Trading Activity: • You may not trade your own accounts in our facility. This includes, but is not limited to, using mobile electronic devices, laptops, PCs, or other devices. • Please always follow the instructor’s stated rules for trading with Online Trading Academy’s capital. • Please contact the Center Owner or General Manager if you have any questions.

6. Class Introductions In order to get the most out of this learning experience, please answer the following: What is your name? Why are you taking this class? What are you currently trading?(Options, Futures, Forex, Stocks) Have you had success at buyingand selling anything? Please keep answers brief

7. Your Purpose You are here for one purpose… To learn how to make moneyby trading and investingthe financial markets. How?... You will learn Online Trading Academy’sCore Strategy

8. Education Mission At Online Trading Academy… We reveal the truthabout profitable trading and investing: You can learn to identifymarket moves before they happen

9. Learning Stages

10. Professional Trader Professional Trader is a 2-day,On-Location course that serves as the prerequisite entry point for ALLfourof the asset-trader classes beginning first with Stock and then progressing to;Futures, Forex and Options This course builds a solid foundationof key, actionable trading concepts including:

11. Professional Trader Day 1 • Gain a thorough understanding of risk and reward • Learn the language of traders and understand key terminology • Filter Economic Reports for valuable information • Understand the flow of trading and the role of brokers, exchanges, Indices • Learn to use charts and candles as a window into how markets really work • Core Strategy – Learn how the principles of supply and demand form the core for our powerful trading strategy Day 2 • Explore various trading styles and identifying what is right for you • Core Strategy – Learn specific chart setups, entry types, exits, and keyOdds Enhancers that are a part of Online Trading Academy’s core strategy • Core Strategy – The power of Trends to know WHEN to take action • Bring all the core strategy components together to form a practical and actionable trading-plan for trading success • Overview the details, benefits and, nuances of each asset class, to become a complete trader

12. Learning Objectives • Today you will learn… • Trading Foundation • Understand the fundamentals of risk and reward in trading. • Basic Market Terminology • Be able to speak the language of traders. • Economic Reports • Know what information to look for and why it is important. • The Flow of Trading • Understand the components of trading, Brokers, Exchanges, Indices • Charts, The Window Into The Market • Power of Price Action, Time frames, Charting, Candlestick Basics • Core Strategy – Supply and Demand • Learn how markets really work and the two mistakes of novice traders

13. Class Schedule Day Start Time Lunch End Time Saturday Sunday Monday Tuesday Wednesday Thursday Friday US Stock Market Hours Pacific: 6:30am-1:00pm, Mountain: 7:30am-2:00pm, Central: 8:30am-3:00pm, Eastern: 9:30am-4:00pm

14. Content Learning Structure

15. Trading Foundation “Trading is simply a transfer of money from those who don’t know what they are doing, into the accounts of those who do know what they are doing.” Sam Seiden, Vice President of Education Online Trading Academy

16. Trading Foundation In the world of trading and investing, there are two groups of people. Those who are consistently profitable. (Professional Trader) Those who consistently lose. (Uneducated Novice)

17. Trading Foundation • What side are you on? Poised Professional • Proper education • Always uses stops • Excellent discipline • Detailed plan • Proven strategy • Trades without emotion • Understands risk • Connected in a community • Continues education Nervous Novice • No/poor/wrong education • No plan for risk • No/poor discipline • No plan • No real strategy • Trades with emotion • Trades high risk • Isolation

18. Trading Foundation Who is on the other side of your trade? Consistently profitable traders know who they are trading with. They know whether they are trading with a professional or novice. You must know the difference!

19. Trading Foundation

20. Trading Foundation Components of YourTrade

21. Trading Your Plan Trading Plan

23. Terminology To communicate and trade effectively, you need to know the language of trading.

24. Terminology Relating Terms Supply Demand Categories Trade Action Buy Sell Zone Reference Demand Supply Trade Type Long Short Business Wholesale Retail (Real)Resistance (Real)Support Conventional T/A Turning Points Bottoms Tops Emotion Greed Fear Color Green Red

25. Terminology Bullish Bearish • A market going up • Bias to higher prices • Uptrend • “That stock is bullish” • “The market is bullish” • A market going down • Bias to lower prices • Downtrend • “That stock is bearish” • “The market is bearish”

26. Terminology Technical Analysis: Based on the study of price action, human emotion, & volume shown in the charts. As traders, this is the preferred method of analysis. Fundamental Analysis: Based on the overall financial “health” of the company or economy, both now and in the long term future. As traders, we don’t act on fundamental analysis, but we are always aware of it. The debate goes on, but just remember; people can lie, charts cannot!

27. Terminology Three elements of every trade: Entry Stop Target

28. Terminology The Entry • Entry is the act of opening a position in a market. • With a good entry we gain: • Larger profit potential • Less risk • Higher probability that the trade will workout in our favor Entry Target Stop

29. Terminology The Exit • Exit is the act of closing a positionin a market some time after entry. • The proper exit is: • Pre-planned • Disciplined • Often overlooked • An exit can be for a profit or a loss. Entry Target Stop Loss Profit Exit

30. Terminology The Profit Target • Profit Target is an order to exit a position for a predefined gain • Is a criticalpart of any trade • Measures the reward of the trade • Can have multiple targets per trade • Permits both small and large gainsbased on market conditions and plan for the trade Entry Target Stop Profit

31. Terminology The Stop Loss • Stop Loss is an order to exit a position for a predefined loss; also known as Protective Stop Loss. • Is a criticalpart of any trade • Measures the risk of the trade • Permits small losses instead of incurring large losses • Is getting stopped out ok? • Yes, it’s a cost of doing business! • Las Vegas loses money eachday, it’s a key part of theirprofitable strategy Entry Target Stop Loss

32. Terminology Three Elements of a Trade in Summary… When placing a trade in the market, ALWAYS include the three components: Stop, Entry, and Target Use the simple acronym S.E.T. as a reminder to include all three components Entry Target Stop • S = Stop • E = Entry • T = Target

33. Terminology Long Position A position that is bought now with the intent to sell later at a higher price. Target Sell shares/contracts Buy shares/contracts Entry

34. Terminology Long Position Sell @ 40 (Target) Profit:40 – 30 = 10 points Buy @ 30 (Entry)

35. Terminology Short Position A position that is sold now with intent to buy later at a lower price. Entry Sell shortshares/contracts Buy to Cover shares/contracts Target

36. Terminology Short Position (Stock example) Sell Short (Entry) Stock shares are borrowed from your broker Your Broker Stock shares are returned to your broker Buy to Cover (Target)

37. Terminology Short Position Sell Short @ 40 (Entry) Profit:40 – 30 = 10 points Buy to Cover @ 30 (Target)

38. Terminology Short Position • Some stocks may not be shorted or shortabledue to: • Limited liquidity or float • No inventory carried by the brokerage house • IPOs for the First 30 Days • Most large cap stocks are shortable. • Brokerage will give you a master Short List. • Futures & Forex do not have “shorting” restrictions like Stocks do.

39. Terminology Short Position Long Position Protective Stop Sell to close (Target) Sell Short to open (Entry) Buy to cover to close (Target) Buy to open (Entry) Protective Stop

40. Terminology Reward-to-Risk Ratio Reward-to-Risk Ratio: 2.00/0.50 = 4 This is a 4:1 RR or a “4R” trade. Sell @ 22.00 Reward (2.00) Risk (0.50) Buy @ 20.00 Stop Loss @ 19.50

41. Terminology Level I Information Description: Name of the company or contract Symbol: Each company has a ticker symbol to identify itself “DELL” 4-symbols = NASDAQ listed, 3 symbols or less = NYSE Last:The last price that was traded Netchange: This is the amount that the price has changed from the previous day’s close Net % Change:The % change from the previous day’s closing price

42. Terminology Level I Information Previous Close: Previous day’s closing price Open: Opening price of the day High:The highest traded price at that time Low:The lowest traded price at that time Range:The difference between the highand the low Volume: Total amount of shares traded at that point in time

43. Terminology Definition Term Every trade consists of at least two orders to buy and/or sell in a market. Usually one to enter the trade/investment and one or more orders to exit Order Willing Buyers: Those who are willing to buy into a market at a specific price, below current price Bid Willing Sellers: Those who are willingto sell in a market at a specific price, above current price Ask Terminology

44. Terminology NASDAQ TOTALVIEW® NASDAQ TotalView® displays more than 20 times the liquidity of Level II and three times the liquidity within five cents of the inside market.

45. Terminology “Buy it” (*Market order) “Sell it” (*Market) “Offer out” (*Limit) “Bid to buy”(*Limit order) *Order Types covered later

46. Terminology Time & Sales Report (Prints) • Record of actual trades • All Trades must be reported • Price & size reported • Unofficial report • Includes “out of the money” trades &“late” Prints • Greenprint at Ask • White print between Spread • Redprint at Bid Actual Trades Potential Trades

47. Terminology Market Makers • MSCO = Morgan Stanley • Over 500 NASD member firms • Trades stock with the public • Always buying and selling - “makes a market” • Trades for customers and own account • They place the trades for investors and traders

48. Terminology Electronic Communication Network (ECN) • Electronic trading systems that automatically match buy and sell orders at specified prices • Allows us to connect directly to the exchange (market) • Can be used by all: NSDQ: NASDAQ Execution Services ARCA: Archipelago (NYSE) FLOW: LavaflowInc (Citigroup) EDGA: Direct Edge BLTR: Bloomberg Tradebook ISE: International Exchange BATS: BATS Global Markets NASDAQ ECNs account for around 30% of total share volume.

49. Terminology • Cash Accounts • In a cash account, you are only able to use the money you deposit into the account. • You are not allowed to borrow money. • You can NOT short securities in a cash account. • Typically settlement is T-1, but may go as long as T-3. It is not T-0 like a Margin account.

50. Terminology Margin Account • Higher leverage, can amplify your profit or loss. • With a margin account, you are essentially borrowing money from someone. • You pay interest on this borrowedmoney if carried overnight. • You are responsible to pay this money back, regardless if you win or lose. • Contact your broker about the account minimum for a margin account.