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Stock Trading Success Volume 1

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    !"#!$%

    Owners 14-DVD System HandoutSupplements: Proprietary Trading

    Techniques & Patterns

    VOLUME 1

    Future Volumes Will Be EmailedTo You In The Months Ahead

    And Posted In Your Members AreaAs A Special Complimentary Bonus

    Contact: [email protected]

    $&"$&"$&"$&"

    %'%'%'%'(((( )*+*)*+*)*+*)*+*

    Participant Workbook

    #

    ,+

    !!$%

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    - Come prepared to learn with an open and active traders' mind.- A valid photo ID is required for admittance. You will be required to sign adisclaimer and waiver/legal agreement prior to attending the seminar. No ID, noadmittance. No exceptions.- Because of the huge volume of tips and trading content we will be covering (think"3+ days worth of seminar in 2 days"), we will need to limit questions to times duringour interactive Table Activity sessions, which will be fairly frequent during theseminar, as well as during lunch and after the sessions each day.- We will stay as late as you need following each seminar day to answer all ofyour trading questions that you may have. We are there for you, I just need toask you to not interrupt each session's topic with a lot of questions, or we won't

    have time to cover everything. I am an expert facilitator, having trained 28,000people in my career, and will facilitate everthing successfully to keep us on schedule.- Absolutely no personal recording devices allowed.- Absolutely no cell phones, laptops, pagers or other annoying electronic devicesallowed. These will be taken from you at the door if you bring them, kept at thefront office of the Sheraton, and returned at the end of the session.- Absolutely no 'heckling' or negative comments allowed.- No competitors or their affiliates/agents/partners allowed: absolutely nobody who isaffiliated with, owns, works for or is compensated in any way by any person orcompany that delivers stock trading related seminars, online chat services or stock

    educational services is allowed to attend, and agree to liability damages if they do.- Absolutely no food, soft drinks, bags of chips, candy will be allowed in the mainseminar room. This is annoying and distracting. We will provide coffee, lunch andother food to you during the seminar.- No exceptions to any of these guidelines will be permitted. They are for thesuccess of the seminar.

    ("-./&%0$$

    To make this a fast-paced, comprehensive and successful seminars,I ask for your help in following these guidelines during the session:

    NOTE: Daytrading is a speculative and risky activity, and you are encouraged to seek the guidance of a qualified financial advisorprior to trading and security. We are not a registered financial advisor nor investment advisor and make no warranties as to thesuitability of the techniques contained herein. You assume full liability and responsibility for the outcomes of all of your tradingactivities, including but not limited to loss of capital. Charts found herein are 2006 eSignal http://www.esignal.com Used withpermission. All other materials are 2006 Ken Calhoun/HBTG. All rights reserved. DISCLAIMER : U.S. Government RequiredDisclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also largepotential risk. You must be aware of the risks and be willing to accept them in order to invest in the equities, futures and optionsmarkets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks, futures oroptions. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed onthis web site. The past performance of any trading system or methodology is not necessarily indicative of future results. By usingDaytrading University's services you hereby agree with all terms in our disclaimer.CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE ANACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THETRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IFANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL AREALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION ISBEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.You hereby agree to be bound by all terms of our disclaimer, located on our website, athttp://www.daytradinguniversity.com/disclaim.htm We wish you success!

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved Worldwide.

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved Worldwide.

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    Ralph B. I've read tons of books, attended the online trading expo in NY, tried a few trial web trading rooms. I thinkyour web site is one of the best educationally so I'm really looking forward to the live room.Hussain A (3/16) I just subscribed to your great site and already went through two lessons. I am liking it so far, Ihave learned a lot.Rusty M. (3/12) I've read alot about daytrading and feel that finally your course is just what I need. Thanks for fillingthe void. You seem very knowledgable and I think I can learn alot from your course.John C. (3/11) The transcripts are really interesting. Can't wait to try it live. Looking forward to completion of thecourse modules. The content of DTU has been outstanding and extremely rewarding. I sincerely appreciate theeffort.Kathy C. (3/6) Just wanted to let you know how helpful DTU is for me so far. What's great is to have some realguidelines around the specifics (eg which MAs work best). I also really appreciate no banner advertising. Anyway,thanks for helping to ease one daytrader's entry into this demanding and, to a beginner, bewildering field.Sam G. (2/28) My wife Rufina is actual student, and she speaks very highly of your leadership in your teaching.She has learned so much from you in these months, I want to thank you! It is changing her life in most positive way.Dave L. (2/27) Ken--I have been a DTU/TTO member since approximately Dec. /Jan. 2001, and I have learned anincredible amount of invaluable information from both of these sites. I have totally immersed myself in the study ofyour system and have paper traded very successfully along with you on a full time basis for some time.

    Robin V. (June 18) I just enrolled in DTU. And I must say that it was well worth everydollar. The tips and techniques that you give are very specific and detailed to the point ofbeing useable. I have read several books and none have come close to the information

    that you give in the modules. THANK YOU for making all of these available to us. (Sept18) I like DTU so much because it gives me an in depth, detailed knowledge of how I canbe a successful professional day trader someday! (10/3/00) I have never come across anymaterial that comes close to the level of thoroughness that you have. Many many thanksonce again for the thorough answers you gave on going short on swing trades. I am reallyimpressed at how you can still find time to answer all your e-mails in such a high qualitymanner.

    From Jim M. of Columbia, MD(Nov 30) I am very impressedby the amount of goodinformation your coursecontains, and find it to be anespecially great value for whatyou are charging members.You have obviously put a lot oftime and effort into yourcourse development...great

    job!

    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved Worldwide.

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    from Nixon C. (May 15)very useful help Ken, i will soon be a Master at trading with a US broker at the rate i ampicking up knowledge! (thx to you)from Manfred G. (May 13)I am really glad I found you - by chance - on the web. After reading several books "how toget started" in daytrading now I have the real tool to get into this business. Thank you very much! (11/11/00) Would bevery glad being in your classes / working through your lessons, they are not only helpful, they are decisive becoming agood trader.from Chris K. (May 11)Thanks for the newsletter and thanks for your site! I have learned more in the last 3 weeksreading and trying out the ideas you present than I did in the prior 12 months reading the many generic 'day-trading'books that are out there.from John D. (May 8)I am currently a subscriber to your site. I am incredibly happy to have access to real scenerios

    instead of just the theory taught in most books on day and swing trading.from Lee L. (May 6)I've learned so much straight forward, easy to understand info from your site. Keep up the goodwork! You Rock!!from Chris D. (May 6)I'm very impressed by the standard of information made available in your course. Thanks for anexcellent and affordable service.from Tim M. (May 4)You've got a great site ... glad I signed up for the course!from Victoria A. (April 30)I have to say, once again, how greatful I am to have found your online course.from Raghee H. (April 30)THANKS for a great site! I am thoroughly enjoying it.from Man F. (April 26)thanks you are really help. your company courses are very excellent...i am very appreciate youradvice. You are very good instructorfrom Johann M (April 23)Thanks for the great daytrading course, you offer your members. I am member since 03/05/and I love your site. It's really what you 've promised your members. Information for Daytraders you really need forsuccesfull daytrading. I 've to congratulate to myself that I 've found your site.

    from Terry N. (April 22)I am very impressed with this course...from Vincent L. (April 21)I have benefited a lot from the course. Thank you very much. The course is well organizedand designed.from Eugene W. (April 17)Very exciting...thanks for the T&S advice in the modules, very helpful to catch the drift ofwhat the market is doing in the moment. You're the only day trading writer emphasizing the importance of T&S inrelation to L2 and other data...You have been helpful and prompt... I find myself reading, and re-reading the DTUwebsite when I have new questions that come with my ever expanding knowledge of day trading. DTU is an excellentresource and a fine value!from Moses A. (March 27)I was at the oakland on line traders world expo yesterday. I attended Mark Seleznov's levelII seminar and towards the end of the seminar, he highly recommended your daytrading website...from Joseph T. (March 25)The price was affordable compared to other places but what really got me hooked was theformat of your site...informative and down to earth. I enjoyed the signing up process, your quick email replies, and mostof all the site...Keep up the great work and I will recommend it..

    from Eric A. (March 25)Dear Ken, As someone who is relatively new to day trading I have spent an enormous amountof time researching various books and sites. DTU is clearly the winner!!! Well designed and easy to apply I think youhave cut my learning curve in half. (9/30/) Just renewed my membership. Money well spent!from Herb B. (March 19)Hello. As one of the newer subscribers to Daytrading University let me say how pleased I amwith your service. As a day trader who has been at it for a year, I have a library of books on the "science" ofdaytrading....Your hands-on, practical lessons are not only pertinent but immediately applicable.from Allen W. (March 18)Thanks for your time and your site is great. I have refered many of my friends to you.from Richard S. (March 17)keep up the good work, you have a great site and I am learning a lot.from Keith B. (March 17)Thanks again Ken, took a quick look around the University today and hope to begin mystudies this weekend. Look forward to a very PROFITABLE learning experience.... BTW, I am half-way thru Module 2and am very impressed with the information presentation. It's great! Consise and very comprehensivefrom Rick P. (Mar 10)First of all, just want to say great training course. I paid $3K to go to a broker's training class andthis training course is better! ...Just noticed you are putting information about shorting in one of your new modules.Looking forward to it. I am very happy that I enrolled into this course as I believe that the content is excellent. I haveread quite a few books on this subject and haven't found any that "cut to the chase" like your notes.from Jim J. (Mar 7)...you're doing a great job,...and you are a credit to the trading profession. Though I'm still papertrading, I feel , after doing DTU, I'm on the edge of something beautiful. laterfrom Tim A. (Mar. 2)I have learned a lot already from DTU. I am a new trader who has an immediate goal of earning$1000 per week and raise it as I gain knowledge. Thanks- you are a very good instructor- keep up the good work!!thanks so much for your course, I see it will save me much $ in the future in losses by teaching proper moneymanagementfrom Dolores M. (Feb. 22)One thing I want to say. You strike me as a person with a generous spirit and yourmaterials bespeak you as an excellent instructor (I have taught science at the college level for over 23 years). I'mhappy to be aboard. Your program is incredible - a person' has got to be an idiot not to subscribe to your teachings.Never saw so much for so little!

    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved Worldwide.

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    Confused about how to trade during the first hour of the market? You won't be after thiscomprehensive clinic, designed to teach you step by step trading strategies.

    Learn exactly how to trade the open breakout plays in leading-sector volume stocks using specificcandlestick patterns and market internals. You'll get to follow and learn from both live market opensand learn from Ken's specific strategies, asking all your questions and getting realtime live answerswith other traders!

    In this special half-day trading clinic, you'll learn:

    Premarket Gameplan: Learning How to Develop 5 Key Parts of your Daily Trading Plan during the8amEST-9amEST timeframe and follow it using live market indicators.

    3 Steps to Determining Market Volatility during the First half hour: assessing your trading "odds" for

    each sector and chart pattern, assigning probabilities

    Chart Pattern Clinic Part I: Scanning Charts, Filtering, and deciding what and where to trade usingalerts and how to decide conservative vs aggressive triggers for each chart.

    Price Elasticity and setting Long/Short triggers using specific chart patterns and trading ranges

    Starting with a KISS: Keeping it Simple and Straightforward. The 5 indicators all traders must followeach morning as they develop their day's trading plan in realtime.

    Chart Pattern Clinic Part II: Determining 2nd and 3rd entries, how to spot whether a chart is

    exhausted or likely to continue

    How to Use TRIN, ADX and tape speed along with candlestick patterns to confirm entries

    Recognizing significance of candlestick size and engulfing pattern breakouts with volume

    Confirming candlestick pattern entries with western technical indicators: ADX, TRIN and volume

    Spotting Pivots and Fade Plays: Chart Examples of Fade and Fibonacci Retrace Entries

    "The Desirable Dozen": 12 Chart Pattern Drills - Where to Set Long/Short Triggers for Each Chart?

    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 1

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 2

    5 Key Parts of your Daily Trading Plan

    1. Long and Short Triggers for 8-12 Stocks done by 9am

    2. Assessment of Premarket Volatility : hot or not? (Nas futs, qqq)

    3. Risk Management Strategy by Stock (dollar P&L, AITR)

    4. Pacing, Expectation based on prior day OHLC COMPQ config

    5. Develop Gap and Breakout s/r levels, look for breadth vs isolated

    3 Steps to Determining Market Volatility during the First half hour

    FIRST (Starting at 9:30): SPEED OF SECTOR MOVES/% Change

    SECOND: COMPQ Candlestick Pattern relative to prior day OHLC

    THIRD: TIER 1 Lead stock and Gap Moves, speed of price moves

    NOTES:

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 3

    CHART PATTERN Clinic Part I

    Scanning Charts, Filtering, and deciding what and where to trade usingalerts and how to decide conservative vs aggressive triggers for eachchart.

    1. Price Elasticity and setting Long/Short triggers using specific chartpatterns and trading ranges (examples discussed)

    2. The 5 indicators all traders must follow each morning as they developtheir day's trading plan in realtime:

    a. Market Internals Profile: e-mini/TRIN/COMPQ 2d/sector %ages

    b. Volume Bar Progression/Slope

    c. Time & Sales Relative Strength

    d. Visual Patterns: Cups, Triangles, Consolidation/congestion

    e. Signal strength on 2nd move after initial market-open reaction 9:38am+

    NOTES:

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 4

    CHART PATTERN Clinic Part II

    How to Use TRIN, ADX and tape speed along with candlestick patterns toconfirm entries, setting 2nd/3rd entry triggers:

    1st : Candlestick Pattern the Top Level Indicator, 1-minute at a time2nd, drill down into Time & Sales

    2nd: Recognizing significance of candlestick size and engulfing patternbreakouts with volume: Must be validated against current COMPQ

    3rd

    : Confirming candlestick pattern entries with western technicalindicators: ADX, TRIN and volume, now check vs time/sales

    Spotting Pivots and Fade Plays: Chart Examples of Fade and FibonacciRetrace Entries

    Tip: Stock should be near edge of trading range after 3-line break/fastrun/sharp slope, all within first 20-30 minutes of the opening bell

    "The Desirable Dozen": 12 Chart Pattern Drills Where to Set Long/Short Triggers for Each Chart?

    NOTES:

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 6

    From Now On, Ill do MORE OF:Which strategies do you feel will be most useful in helping

    improve your personal trading skills during the next 6 weeks?

    How will you TEST each strategy to measure its effectiveness?

    From Now On, Ill do LESS OF:What have you been doing in your daily trading that you now seeis probably costing you stops, that you will now Avoid doing?

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    Breakout trading, both on 2-day highs as well as intrarange entries, is a core staple for anyprofessional trader. Learn specific micro-patterns for the current market, as well as confirmation

    signals using multiple indicators and much more in this exciting session.

    In this second powerful half-day trading clinic, you'll be learning:

    Planning for Breakout Trades Each Morning: How to Set Entry Triggers in the Premarket

    Opening Bell Mayhem: How to Spot Breakout Opportunities as They Develop in Realtime

    After 10am: Using intrarange pattern breakouts and breakdowns

    Learning How to Spot Breakout Trade Entries at least 20 minutes ahead of time

    Cup Pattern Breakouts, 3 Line Breaks, Volume Breakouts, and other core Breakout Charts

    Time and Sales Part I for Breakout Play Recognition

    Time and Sales Part II for Breakout Trading Mastery

    Using ADX, Advanced Tick Chart, and Volume Breakout Candlestick Patterns

    Managing Multiple Positions: How to Participate in Rallies and Selloffs for Breakout TradeLeverage

    Risk Management for Breakout Traders: Strategies to Avoid False Breakouts and How to TrailStops

    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 7

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 8

    NOTES:

    Breakout Trading Planning

    Planning for Breakout Trades Each Morning:How to Set Entry Triggers in the Premarket

    1. For 2-Day High/Low Breakouts:Visually determine risk/chop region outside of prior days high/low(.2 over the whole number? The .7 within? .8 under whole number?)

    2. For Intrarange Entries:

    - Look for interior prior day close value as hook- Scan for interior s/r levels and patterns (cups/consolidations)- Visually estimate what specific trigger will be likely to continue

    Opening Bell Mayhem:How to Spot Breakout Opportunities as They Develop in Realtime:

    1. Validate against e-mini and COMPQ pattern, every time

    2. Look for sector-broad moves vs isolated patterns

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 9

    NOTES:

    Breakouts by Time of Morning:

    Differences in Breakouts on Opening Bell vs post-10am breakouts- Strongest pattern is post-10am major 2d high/low continuation trend- Fast clips inside 10-minute windows during the 9:30-10am timeframe

    How to Spot Breakout Trade Entries at least 20 minutes ahead of time:- Breakout Slow-Build patterns:

    -Consolidation all morning then break (inside range following

    wide range prior day, or gap n consolidate)- Breakout Continuation patterns:- These are 2nd/3rd cup breakout continuations in volatile stocks

    Cup Pattern Breakouts, 3 Line Breaks, Volume Breakouts, and other coreBreakout Charts: Examples reviewed

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 1

    NOTES:

    Time and Sales Part I for Breakout Play Recognition- Recognizing interior strength vs churn in the tape

    Time and Sales Part II for Breakout Trading Mastery- How You can spot volatility continuations vs walk-away patterns

    Using ADX, Advanced Tick Chart, and Volume Breakout Candlestick Patterns- Charts Reviewed, examples

    Managing Multiple Positions: How to Participate in Rallies and Selloffs forBreakout Trade Leverage

    Risk Management for Breakout Traders:Top Strategies to Avoid False Breakouts and How to Trail Stops

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    Having a tough time finding good gap stocks, then deciding which ones are worth trading? Howabout "where do I set the entry trigger, and do I go long or short? When? Help is on the way!

    In this special 2-hour trading clinic, you'll see:

    Over 12 different gap chart patterns from previous actual live room plays as well as whatever'scurrently gapping in Friday's premarket, for pattern recognition training.

    An easy way to combine your CNBC premarket gap scans with core trading basket scans

    How to differentiate between stock patterns that are "tradable", vs gap stocks to leave alone.

    Four techniques for finding premarket entry support/resistance levels, whole number and entry

    triggers.

    How to do "Trading Gaps in the Premarket, Trading Gaps During 9:30am til 10am, and How toTrade Gap Stocks after 10am" for both day and swingtrades.

    How to integrate ADX, stochastics, time and sales, and volume with Gap Entries for confirmations.

    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 1

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 1

    NOTES:

    12 different gap chart patterns- Pattern Recognition Training Activity: Prior + Current Examples

    Combine your CNBC premarket gap scans with core trading basket scans

    How to differentiate between stock patterns that are "tradable", vsgap stocks to leave alone:

    - Price of stock + premarket pattern differences (wide/clean cups vs not)- 10% gap rule- Volume increase on whole number s/r breakout move or not?

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 1

    NOTES:

    Four techniques for finding premarket entry support/resistance levels, wholenumber and entry triggers.

    1st: Simple nearest whole number box ranges

    2nd: Half-point away from whole-number ranges (use when caution/red flags)

    3rd: Initial Exit targets using Fibonacci 50% lines: how to set these

    4th: How to Set 2nd/3rd entries after initial ones have been taken out

    Multiple Timeframe Gap Trading -- How to do:

    - Trading Gaps in the Premarket- Trading Gaps During 9:30am til 10am, and- How to Trade Gap Stocks after 10am for both day and swingtrades.

    How to integrate ADX, stochastics, time and sales, and volumewith Gap Entries for confirmations.

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    Figuring out what Not to trade is just as important to learn as what To trade, right? In addition to allthe tips that have been shared already, you'll learn how to recognize additional "Red Flags" to help

    you stay clear of iffy trades!

    In this special 2-hour trading clinic, you'll be learning:

    How to See if a Market is a Gap and Trap vs Gap Continuation, and how to trade it

    Differentiating Between high and low-potential chart patterns: which ones are best for trading?

    5 Patterns That I Avoid trading at All Costs

    How You Can develop a red-flag checklist to keep you out of iffy trade situations and charts

    Time and Sales caution signs: tape reading mechanics for avoiding entries and false breakouts

    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 1

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 2

    NOTES:

    How to See if a Market is a Gap and Trap vs Gap Continuation, andhow to trade it.

    - Expect a post-10am Pivot, use that as the default (10:00-10:10am)if premkt futures > +/- 12.00 in magnitude

    - Function of the degree of COMPQ Gap outside of prior days tradingrange and pattern given specific nasdaq premkt futures value

    - Have your decision points clearly mapped out, eg S1/S2 + R1/R2point values in the COMPQ

    - Market Timing Patterns:Market Consolidations, Market Breakouts, Market Continuations,Market Pivots: Timing Insights for Experienced Trade Setups

    - Integration of Nasdaq-100 E-mini hod/lod continuations with COMPQpatterns

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    NOTES:

    Differentiating Between high and low-potential chart patterns:Which ones are best for trading? (chart examples)

    5 Patterns That I Avoid trading at All Costs:

    1st: Middle 1/3 of 2-day chart

    2nd: Late in day post 11am (unless 2-d continuation market,

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    NOTES:

    How You Can Develop a Red-Flag Checklist to keep you out ofiffy trade situations and charts

    Graph out the times of day, sectors and length in trade of mostrecent 50 wins vs stops

    Develop countermeasures to control for making the errors youhave been making (eg jumping the gun, overtrading, tradinglate in session, not doing multiple trades)

    Create visual reminders around your trading platform to keep

    you on track in avoiding red-flag scenarios, replace habits

    Time and Sales Caution Signs:Tape Reading mechanics for avoiding entries and false breakouts:

    - Detect stalls, slowdowns, uncertain patterns where neither buyersnor sellers can convincingly move stock price through at least2 subsequent .10 (ten cent) price intervals in sequence w/in 2 mins

    - Detect stop n go patterns, where price moves are sporadic vs consistent

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    Figuring out what Not to trade is just as important to learn as what To trade, right? In addition to allthe tips that have been shared already, you'll learn how to recognize additional "Red Flags" to help

    you stay clear of iffy trades!

    In this special 2-hour trading clinic, you'll be learning:

    How to See if a Market is a Gap and Trap vs Gap Continuation, and how to trade it

    Differentiating Between high and low-potential chart patterns: which ones are best for trading?

    5 Patterns That I Avoid trading at All Costs

    How You Can develop a red-flag checklist to keep you out of iffy trade situations and charts

    Time and Sales caution signs: tape reading mechanics for avoiding entries and false breakouts

    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 2

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    NOTES:

    4 useful trailing stop techniques using dedicated time and saleswindows

    1st : Dime increments behind current inside market

    2nd: More than 25-30 transactions stuck in a given .05-.08 price channel

    3rd: Pivot of nas-100 emini accompanied by .10 move against yourposition in time/sales

    4th

    : position exit management reviewed using time/sales patterns

    Why most traders never learn how to read time and sales correctlyand what to do about it.

    - Tape drills on breakouts- Tape drills on pivots- Tape drills on high vs low volatility 2d high/low vs intrarange

    chart patterns

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    PARTICIPANT WORKBOOK TRADING GAPS & BREAKOUTS SEMINAR 2006 DaytradingUniversity.com All Rights Reserved PAGE 2

    NOTES:

    The 3-Step Tape Reading Exit Strategy I personally use,including live examples of how it works.

    1st: Decide instantly whether to exit now or not

    2nd: Tie together the COMPQ line/emini line and candlestick1-min chart, glance at these continuously as yourefollowing the bid/ask pattern in the tape

    3rd: Look for any move of .15+ as final signal for exit

    How to create a trading plan and process from start to finish to manageand help reduce potential risk for intraday and swingtrades, using timeand sales with other indicators like ADX and volume pivots.

    Elements of a trading plan:- Average number of trades in and shares in, simultaneously- P&L + risk tolerances- Timing and sector analyses for successful trades vs stops- Time of day, day of week and COMPQ pattern sweet spots- Technical indicators used: stock chart specific + market internals

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    NOTES:

    5 specific tape patterns I use to identify trading opportunities and follow thetransaction prints for open range breakouts (9:35am til 9:50am) using

    time and sales (examples shown)

    1st: speeding up tape

    2nd: continuation after .15 pullback

    3rd: volume size >400

    4th: sizes bid/ask imbalance sustained

    5th: countermeasures in the tape discuss strength vs consolidationpatterns, movement out of normal speed/transaction flow

    Additional strategy tips and pointers, Q&A

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    ,*2

    **

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    +*2

    34,

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    *)+*2

    **

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    *),*2

    /*4,

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    5++

    /*,*

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    5,*)

    /*)+*

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    "

    +*

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    "

    ,*


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