Phoenix Stock Trading System Executive Summary

The ultimate goal for designing our new stock trading system was to finally create a trading system that addresses every type of trader and investor. We wanted to design a COMPLETE TRADING SYSTEM that would maximize a trader's probability for success while minimizing their risk no matter what timeframe they wanted to trade in. The following provides a highlight list of this brand new and exciting system called PHOENIX.

1. Designed the system so it is made up of what we believe to be the "best of the best" technical analysis indicators, methods, and trading techniques
2. We only enter trades what we find to be the strongest support areas for long trades and just below what we identify as the strongest resistance areas for shorts
3. Always seek a minimum of 3 to 1 Reward to Risk Ratio
4. The system requires multiple trading techniques and indicators to confirm each other before a trade can be made
5. Seeks to minimize risk as well as your emotions in the trade by using a recipe for trading
   • Uses a rules based system in the form of a checklist so no guesswork is needed on what techniques or indicators to use in order to make a trade
   • Each rule is given an importance rating so no guesswork is needed on which technique or indicator is more important in the trading decision
   • Simply said, if the recipe doesn't have all of the ingredients you need, doesn't have high enough quality ingredients, or the right combination of ingredients, we don't recommend the trade
6. Provides recipes for trading that cover ALL TRADER TYPES
   • Swing Trader - holds stocks 2 days to 2 months
   • Intermediate Term Trader - holds stocks 2 months to 6 months
   • Long Term Trader - holds stocks 6 months to 1 year
   • Investor - holds stocks greater than 1 year
   • This grouping of traders is absolutely critical forsuccess and minimizing risk because so much depends on what rules you use and what the market condition is for each type of trader or investor
7. Seeks to provide the highest probability of returns from the market because we also provide rules for all types of traders that detail how to short stocks
   • We believe that the NEXT GENERATION OF TRADER needs to know how to short stocks in order to maximize their returns in the stock market. The uncertainties that lie ahead require that you have that available to you as a tool or capability.
8. Unlike almost every other trading system or methodology out there that looks only at buying stocks, we provide detailed rules on exactly where to sell your stock depending on what type of trader or investor you are. In order to maximize your returns and minimize your risk, we believe an equal focus has to be put on both buying and selling.
9. This new system uses a top down design approach which is much easier for traders to learn and assimilate into their trading routine. It fosters not only the high level understanding of the stocks and markets but enables the trader to become as advanced in the art of trading as they are comfortable with based on their time and learning constraints.
   • Created a Golden Rule - Rule that captures the essence of our system design which is based on momentum trading
   • Created Six Main Trading Principles - Key principles for consistently beating the market
   • Created Seven Detailed Rules Checklists - Detailed rules on buying and selling as well as shorting and covering for the Swing Trader, Intermediate Term Trader, and Long Term Trader and the basic buy and sell rules for the Investor

Other benefits that we designed into the system are:

1. Comprised of a rules based system so that it can be used with a trader's current trading software or any software the trader chooses that has technical analysis capability. The only limit to your success is how well you learn the rules and how to apply them.
2. Because it is rules based, the scans that we use to seek the best stocks are extremely easy to write into formulas and we have already done that for you using Telechart 2005. We expect that this alone will save you many hours pouring over charts that won't work or aren't the best candidates for a trade.
3. The trading system also INCLUDES FUNDAMENTAL RATINGS in order to seek the best of both worlds.
4. The system can be used for seeking out the most promising ETF's or used with OPTIONS TRADING.
5. System design is very flexible so that it can easily complement a trader's current techniques or software.