2. Copyright 2008 © Toni Hansen & The Bastiat Group, 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. Disclaimer: The Bastiat Group, Inc., the holding company for ToniHansen.com, Swingtrader.net and TradingFromMainStreet.com does not make solicitations, recommendations or offers to buy or sell any security or investment. The Bastiat Group, Inc. does not advocate the purchase or sale of any security or investment. The information provided by The Bastiat Group, Inc. should not be construed as investment, financial, tax or legal advice. The Bastiat Group, Inc. is not a registered investment advisor, commodity trading advisor, broker or broker dealer. Trading in securities may not be suitable for all individuals. The Bastiat Group, Inc. and its members, employees, agents, consultants, analysts, representatives, content and/or service providers, affiliates, subsidiaries, successors and assigns (hereinafter collectively, “The Bastiat Indemnities") assume no responsibility or liability for your trading and investment results. Prior to the execution of any securities trade, you should always consult with your broker or other financial advisor. There is a very high degree of risk involved in trading securities. Past results are not indicative of future returns. Disclaimer and Terms of Use:

3. PART 1 Selecting a Market

4. Comparing Markets  Stocks  Commodities  EMini Futures  Forex  Options  Spread Betting (UK)

5. Stocks - PDT Rule An NASD & SEC rule which states that in order to engage in pattern daytrading (buying & selling a security in the same trading day 4 or more times in 5 consecutive business days) must maintain an equity balance of at least $25,000 in a margin account.

6. Commodities  Grains  Gold  Beef  Crude oil  Natural gas…  Currencies and Indices

7. Futures Virtually 24 hour market – 18:00 ET Sunday – 16:15 ET Friday. Breaks from 16:15-16:30 ET and 17:30-18:00 ET. Unlike stocks, futures positions are settled in cash on a daily basis.

8. Futures Margin requirements: Overnight = $4500 initial & $3600 maintenance. Individual brokers will vary on intraday margin, but $500-$2000 is typical.

9. Forex The most active market in the world. Traded 24 hours a day, 5 ½ days a week. Cost to trade is the spread, measured in pips.

10. Forex The most traded are the U.S. dollar (USD), Canadian dollar (CAD), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Japanese yen (JPY)

11. Options Give you the right, but not the obligation to buy or sell an underlying asset at a specific prices on or before a certain date. A call gives the holder the right to buy an asset at a certain price within a specific period of time, while a put give the holder the right to sell that asset at a certain price within a specific period of time.

12. Spread Betting Allows a trader to participate in the financial markets without ever taking physical ownership of the underlying instrument. No capital gains tax or stamp taxes, but less protection. Cost is the spread. http://www.financial-spread-betting.com/

13. PART 2 Focusing on a Time Frame

14. Time Frame Styles  Scalping  Intraday Trading / Daytrading  Swingtrading  Position Trading

15. Correction Periods  ~9:35 AM  15 & 45 minutes past the hour in the AM  11:00 AM  11:15 AM  30 min. past & on the hour in the PM

16. Times to Watch in FX  3:00 AM London opens  4:00 AM Tokyo closes  8:00 AM New York opens  12:00 PM London closes  5:00 PM New York closes  7:00 PM Tokyo opens

17. Utilizing Time Frames When trading a setup on any time frame, it is imperative that you study both the larger and smaller time frames and not merely the one on which you located your setup.

18. PART 3 Focusing on a Strategy

19. Comparing Strategies  Continuation Strategies (aka Trend-following)  Reversal Strategies  Either/Or Strategies

20. Continuation Strategies  Breakouts  Flags

21. 2-Wave Continuations

22. 2-Wave Continuation Chart © 2008 Townsend Analytics

23. Breakouts & Triangles

24. #1 & #4 Continuations Chart © 2008 Townsend Analytics

25. #3 Continuation Chart © 2008 Townsend Analytics

26. Reversal Strategies  Momentum Reversals  2T / 2B

27. Momentum Reversal

28. Chart © 2008 IBFX

29. 2T & 2B Reversals

30. 2T Reversal Chart © 2008 Townsend Analytics

31. Either/Or Strategies  Phoenixes & Avalanches  Triangles

32. Phoenix & Avalanche

33. Phoenix - Buy Chart © 2008 Townsend Analytics

34. Triangle Reversal

35. Chart © 2008 IBFX

36. PART 4 Incorporating the Different Aspects of Your Plan

37. Intraday/Swing Strategy Utilizing gaps can be a great way to improve your accuracy and reward potential on both daytrades as well as swingtrades in equities.

38. Breakaway Gaps These types of gaps will break a security out of its previous trend and begin a reversal or correction to that trend. These can include breakouts from a base, flag, triangle, etc. Trading Range Breakaway

39. Breakaway Gaps Chart © 2008 Townsend Analytics

40. 2-Wave Pullback Chart © 2008 Townsend Analytics

41. Trading Made Simple Series Toni’s CD bundle:  5 Technical Signals You Cannot Trade Without (7 hours on 4 CDs, 238 page pdf)  Trading Made Simple: No Indicators Necessary (3 hours on 2 CDs, 100 page pdf)  Toni’s Guide to Successful Market Timing (76 pdf manual) http://www.swingtrader.net All three products: $279* (*plus shipping. $497 when sold separately.) Toni’s interactive video courses and manuscripts detailing her trading and investment strategies http://www.swingtrader.net