1

Stock InvestingINVESTING PLAN

2

© 2014 TD Ameritrade IP Company, Inc. All rights reserved. Terms of Use apply. Reproduction, adap-tation, 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® Inc. nor any of its officers, employees, representatives, agents or independent contractors are, in such capacities, licensed financial advisors, registered investment advisers or registered broker-dealers. Investools Inc. does not provide investment or financial advice or make investment recommendations, nor is it in the business of transacting trades, nor does it direct cli-ent commodity accounts or give commodity trading advice tailored to any particular client’s situa-tion. Nothing contained in this communication constitutes a solicitation, recommendation, promo-tion, endorsement or offer by Investools Inc. of any particular security, transaction or investment.

All investing plans and rules are provided for informational purposes only, and should not be con-sidered a recommendation of any security, strategy, or specific portfolio allocation. Investing plans and rules are provided for students to better understand how they may build their own plan that may best fit their own personal investing style. Carefully consider investment objectives, risks and expenses before investing.

All investments involve risk, including loss of principal. Past performance does not guarantee fu-ture results. There is no assurance that the investment process will consistently lead to successful investing.

Important Information

3

▲ ObjectiveTo find fundamentally sound stocks to watch, enter, exit, and manage using technical analysis. This investing plan is to be used to enter and hold as long as the trend is up.

▲ Watch List Criteria

Trend• Look for uptrending or sideways-trending stock

Fundamentals• Phase 1 Score = 5 or higher• F/E Score = 3.25 or better• Price Pattern Score = 2.5 or better

Volume• Average stock volume of 250,000 or higher (the more volume, the better)

▲ Entry Rules

Uptrending Entry• On a daily chart, enter the trade when the 3rd green arrow appears on an uptrending

stock

Sideways-Trending Entry• On a daily chart, if stock is trending sideways, enter the trade on:

1. 3 green arrows2. Volume surge of 150%

▲ Money Management• Position Size: Position size 1% - 2% of portfolio risk per trade

Stock Investing PlanSTOCK INVESTING

4

▲ Exit Rules

Initial Stop• Identify support and resistance levels• Set stop 3% below support on a daily chart (stock price x .97)

3 and 3 Rule• On a daily chart, when the 3rd red arrow appears, move stop up 3% below the lowest

price at which the stock traded that day

▲ Routines

Daily Routine• 3 and 3 Rule: Monitor open positions for 3 red arrows• Market Posture: Determine market trend by analyzing major indices• Portfolio: Survey your Investools Portfolio for stocks that meet uptrending or side-

ways-trending entry signals • Market Commentary: Listen to our coaches discuss daily market action in our Morning

HuddleSM

Weekly Routine• Search for stocks using the top-down analysis approach• Add stocks to your watch list that meet your criteria • Remove stocks from your watch list that don’t meet watch list criteria

Education Routine • Coaching*: Call your coaching team at 1-800-550-2835 with any questions on trade

concepts • Education**: Continue your education (courses, Trading Rooms®, and online coaching)

*Requires active subscription to Level 3 service

**Requires active subscription to Level 2 service

Online coaching hours vary by course. Stock Investing, and Options Strategies online coaching sessions are available daily during regular coaching hours (9a.m.-9p.m. ET Mon. - Thurs. and 9a.m.-7p.m. ET Friday) as well as 9a.m.-12p.m. ET on Saturdays.