SMB FOUNDATION

The SMB Foundation is unique, in that it is a SKILL BASED training program. Daily lesson plans have been crafted using hundreds of written lectures, classroom lectures, trading videos, audio lectures, quizzes, simulated trading drills, one-on-one mentoring sessions, and daily execution drills to build a powerful trading foundation. The SMB Foundation teaches a craft - the craft of trading. What the SMB Foundation is not, is a simple knowledge based program that asks traders to memorize technical patterns, indicators, and trading plays found in countless books and programs online. The hard truth is that much of these technical patterns, indicators, and trading plays are worthless without the trading skills necessary to trade them effectively. Statistically, trading skills take years of experience and lost money to develop, but SMB Capital reduces this learning curve by creating a demanding curriculum focused on trading skills, followed by the development and execution of trading plays that work best for the trainee. There are no secret trading plays that always work. Being a consistently profitable trader is about the adjustments made using trading skills. During the SMB Foundation trainees are taught how to build trading plays that work best for them. Instead of trainees memorizing trading plays without understanding how and why they work, trainees are taught a proprietary method to build trading plays using the trading skills learned in the program. Trainees are mentored through this process, building simple trading plays that work best for new traders and eventually building more robust trading plays specific to the trainees trading personality. Armed with these skills, traders finishing the SMB Foundation are far more mentally and physically prepared to trade professionally, than any other program available to the public in the United States. For traders, the SMB Foundation truly epitomizes the old proverb: Give a man a fish, feed him for a day. Teach a man to fish and you feed him for a life time. A trainee does not have to have any prior trading experience before starting the SMB Foundation. SMB builds traders from the ground up. The training program is laid out over a 5 week calendar. Daily lesson plans have been crafted covering every minute of the trading day, from 8am to 6pm EST, including weekend and evening written lectures and videos. Traders may choose to work through the SMB Foundation 5 week schedule like a trader at SMB Capital or spread the program out over two months to accommodate any time conflicts (we regularly extend the program even further at no cost to the trainee). Below is a list of the major categories covered in the SMB Foundation. Each category may contain dozens of sub-topics made up of dozens of additional written lectures, trading videos, class room lectures, audio lectures, drills, and quizzes:

The first three weeks will focus on Skill Development: SMB’s Fundamentals of Trading

How to find Stocks in Play Second Day Plays Making Trading Opportunities Intraday Fundamentals Reading the Tape Technical Analysis Mastering Entries and Exits Pattern Recognition Reading Order Books Correlating Markets Reading and Trading ETFs SMB Order Execution Method (OEM) Risk Management Psychology of Trading Building Routines

The last two weeks will focus on the building and executing of trading plays with one-on-one mentoring:

Trading Play Structure Building Trading Plays Types of Trading Plays Simulated Trading Trade Management Post-Analysis & Adjustments One Good Trade Structure Road Map for Trader Development

SMB trains traders on an individual bases remotely or in office. Trainees may start the SMB Foundation at a time that best suits their schedule. Being able to work through the program independently with a mentor gives trainees a more personalized experience without having to compete for attention. Mentors usually work with no more than two trainees at a time through the SMB Foundation training program, assuring a trainee focused guidance. At the end of the SMB Foundation, and one-on-one mentoring, trainees will receive a full evaluation on the skills they are doing well and what needs improved; along with a road map to make trading a career. Trainees will be graded on 21 key attributes found in consistently profitable

traders at SMB and extended the opportunity to develop as a trader under the coaching of SMB Capital mentors.

Syllabus SMB Trading Skills Day 1

SMB Training Introduction (Watch: Standards by Bella) The Level II Basics (Video is included) Stacks In Play Call Prints (read and watch) Standard Execution Keys instructions Lightspeed Basics An introduction to keyboard mapping Setting up Sweep keys Bid/Offer vs. Buy/Sell hotkeys (video is included) Magic Charts Manual Pyramid of Success Proper Preparation (video is included) Visualization (video is included) Visualizing Goals with Dr. Steenbarger (video is included) First Visualize Yourself Being Great (reading) Hard Work and it’s example (read and watch) SMB Webcast Prints Close ONXX (example video) Quiz

Day 2

An Unusual Hold on the Bid (video is included) SMB Stocks in Play Prints (bearish and bullish) An Introduction to Tape reading by Bella Reading the Tape (an example by Bella) Patience (read and watch) Compilation of held bids/offers, unusual holds (videos of 5 examples) Stocks In Play checklist Rehearse the Open (video) Choosing the Right Stock for You (Stock Zone)

Coming back to bid and Big tested stock goes higher (video) A Detailed Plan for Every Trade (video is included) Everything you ever wanted to know about visualization and trading (Parts I,

II and III) with Bruce Bower Example 2 Successful Trader (Visualization Exercise with Steve) Unusual Hold on the bid- Apple 141.40 hold on the bid (video is included) Unusual Hold on the Offer on the Open (video is included) Quiz

Day 3

Inside Market/ Box (video is included) SMB Scanner Tutorial Inside market/Box (audio file is included) Discipline (video file is included) When Your Stock Hits Exit price Reviewing Your Important Trades (audio and video files are included) Breakout Intraday Price (video is included) Importance volume (video attached) “Successful Trader” (audio file is attached) Socks in Play Examples (audio and video files are attached) Finding Stocks In-Play with A. James (video) Reading the Tape-Inside market CFC (video)

Day 4

The Corresponding Futures; Indicators (video) and Corresponding Futures (video)

Patience (video) Lion and Gazelle “Successful Trader”, “Our Fundamentals” (audio file) One Good Trade (audio, video) Reasons to buy ( video) Corresponding Futures TIF (video) Intraday Levels Intraday Support and Resistance Levels (video)

Day 5

AM Preparation (video)

Trading Patters on the Open SMB Capital Visits Indiana University Reasons to sell (audio and video) Trade Review CTXS (example video) Finding Stocks Intraday for the Close (audio and video) Catalysts for a Stock (video file is attached) Dopey Orders GMAN and Order Entry - How to place your dopey orders (audio file) Your Dopey Orders (video) The Relaxation Response (audio and video) Selling Pattern Recognition in EK (video) Catalyst (video)

Day 6

The Big Picture Frustrated Trader Why hold a Stock against You? (audio) Why hold it, Monkey? (video) This isn’t a County Club from Bella (audio) Speed II “Successful Trader”, “Our Fundamentals” (audio) Doubling Down (audio and video) The Profitability of Being Wrong Bid tested twice but drops (video) No Sales on the Offer (video) Getting in and Out Getting in and Out (Part I) (audio); Getting In & Out SMB Webcast (video) Held Bid- Aggressive Seller (video) Held Offer- Held offer FCX (video)

Day 7

Speed II SMB Stocks in Play Three Good Trades in CLDA Getting in and out (Part II), (audio) Big Bid hit Catalyst (video) NYSE Open Book (audio and video) Speed II

“Successful Trader”, “Our Fundamentals” (audio) A Big Order (audio and video) Program Finally holds the Bid (video) Program has a Clean move in CCU (video) SMB Webcast A Big Bid Stepping Higher (video) A Good Sale in GG (video)

Day 8

Speed II The Trend is your Friend Stocks In Play Steps to Mastery Unusual Hold on the Bid or Held Bid (audio) Corresponding Futures (audio) Inside Market/Box (audio) Getting in Front of a Big Order (audio, video) Sell Program ACN I had my Worst Day Ever Speed II Eliminating that which Doesn’t Work (audio, video) Focus (audio, video) Huge Sell Order IMCL (video) SMB Webcast

Day 9

Speed II RIMM all time highs (long bias) (video) Using Your Trading Bias on the Open SMB Stocks In Play Stealing from Jim Fredetter Free Money (audio) Order Entry Exercises (audio& video) Speed II Maintaining Your Energy (audio, video) Speed III (GMAN) Stock Patterns BA (video) Technical Analysis Part I

Technical Analysis Part I - Principles of Technical Analysis (video) Free money LEH (video) Stocks Getting Easier (video) Technical Analysis Part II (Nighttime Reading)

Day 10

SMB Stocks In Play Speed II Stocks in Play Hitting a Stock that Trades Against you (audio) For if the Stock Trades in Your Favor (audio) Setting Up your Charts Technical Analysis Part II Basic Chart Settings (video) Setting Up your Charts (classroom lecture) Technical analysis with Brian Shannon (video) Speed III The Psychology of Sizing Flipping; Flipping Example (audio & video) Technical Breakout SMB Webcast Flipping Your Stock SLM A Great Long Position (nighttime reading) A Good Entry Point, a Very Good Entry Point, and a Great Entry Point

(nighttime reading) Weekend Videos: Using Premarket Levels by Rosie;

Call outs on the Desk and Setting Alerts and Getting Long by M. Sia; Watching Corresponding Price of Crude by Sora; Shorting Under Intraday Resistance Levels by John and Alex.

Day 11

SMB Stocks In Play Speed II Rage the Master Corey Rosenbloom at SMB Traders Ask – How Do You Use the Retracement High/Low Speed III Trading Day and Our Fundamentals (audio)

How to Grow a Super-Athlete How to learn (video) Alerts CPSL AM Preparation (audio) Alerts (video) Where to set Your Alerts Alerts with Mr. Spencer (audio) SMB Webcast Basic Chart Reading, Technical Analysis Part III Chart Reading 101 (video) Foreshadowing; A Trader’s Day (nighttime reading) Examples on charts developing off the tape:

Example #1: dis unusual held bid Example #2: ms holds the bid at support @ 29 Example #3: adi holds 24 for a long time

Day 12

Speed II SMB Stocks In Play Catalyst (audio) Pattern Recognition A Point of Clarification A Stock’s Pattern (audio) Foreshadowing (audio& video) Speed III Trading Day and Our Fundamentals (audio) Corresponding Futures Play Basic Chart Reading (exercise ) A Lower High (video) Big Bid Hit Catalyst in POZN (video) A Trader’s Day (audio & video) SMB Webcast The Second Day BA (video) Trades to Hold (nighttime reading) Moving On (nighttime reading) Learning From Other Trades on the Desk (nighttime reading)

Day 13

Speed III SMB Stocks In Play We are All So Different Pattern Recognition (audio) No Excuses Moving On (audio & video) Speed II Trading Day and Our Fundamentals (audio) Learning From Other Traders on the Desk Communication on the Desk (video) Speed III by (GMAN) Price Action: Trends and Trading Ranges Technical Analysis Part IV Price Action by Adam G. (video) The Trend is Your Friend Papertrade and Demo Important Intraday Levels Papertrade and Demo Trades to Hold (audio& video) SMB Webcast Downtrend with buying on the bid (video) Trades to Hold - IMCL Part I (video) Trades to Hold - IMCL Part II (video) Buying Back a Stock That You Have Just Sold (nighttime reading) Getting Back into a Stock “An Example” (nighttime reading) The Second Day (nighttime reading)

Day 14

Speed III SMB Stocks In Play Inside Mkt/Box, Prints and Corresponding Futures (audio) Let’s Get Ready to Rumble Hitting a Stock that Trades Against you (audio) For if the Stock Trades in Your Favor (audio) Buying Back a Stock That You Have Just Sold (audio & video) Speed III Trading Day and Our Fundamentals (audio) The Second Day (audio & video) Getting in and out (audio) The Four Basic Trades by Adam G. The Trend is Your Friend Papertrade and Demo Important Intraday Levels Papertrade and Demo SMB Webcast

Downtrend Play in RIMM Psychology of Trading (nighttime reading) NYSE Open Book (nighttime reading) The Close (nighttime reading) Pre-market Trading (nighttime reading) Mid-day Trading (nighttime reading) The Dog Days of Summer (nighttime reading)

Day 15

Speed II Stocks In Play The weekend Review Catalysts and a Stock’s Pattern (audio) Checks (audio & video) SMB Trading Plays & Mentoring:

Sharing Your Work: Dropbox Simulated Trading Trader Analysis Sheet SMB Playbook Morning Ideas

Speed III Trading Day and Our Fundamentals (audio) Times of the Trading Day: Pre-market/Open, Midday, Close (audio&video) Hitting a Stock that Trades Against you (audio) For if the Stock Trades in Your Favor (audio) Sharing Your Work with Your Mentor Free $ Psychology of Trading SMB Webcast Psychology of Trading with Mr. Spencer(audio); Bella Psychology (video) Held offer below support level (video) Support drops short below (video) Held bid drops but stronger (video) SMB Psychology: There is Always a Lesson to be Learned (video) Dropped Held Bid but Stronger Play (An example WFMI 40.15) (nighttime

reading) Reread An Unusual Hold on the Bid (nighttime reading) A Humongous Intraday Resistance Level (nighttime reading) Support and Resistance Levels on the Open (nighttime reading) Ways to Get Better (nighttime reading)

Weekend videos

SMB Trading Plays

Day 16

Speed II SMB Stocks In Play How to Be Successful Pattern Recognition (audio) Checks Decrementing (audio&video) Simulation Trading with Bella (video) Speed III Specific Trading Scenario The Write Stuff Trading Journal (video) Fixed vs Growth Mindset (video) Hitting a Stock that Trades Against you (audio) For if the Stock Trades in Your Favor (audio) Big Buyer at Support Level followed by an Upmove (video) Dr. Steenbarger on Trading Journal Free $ Support Play, Support Play 2 SMB Webcast Support Play , 2 (audio); Support Play (video) Technical support drops CFC 30 (video) If/Then Statement Directions (nighttime reading) New Trader Goals (nighttime reading) A Range Play (nighttime reading) A Range Play- An Example (KSS) (nighttime reading) Playing a Range Breakout (nighttime reading) Lowering Your Cost Basis (nighttime reading) Funny Video on Trading your Bias (nighttime reading)

Day 17

Speed III Using After Hours Levels

SMB Stocks In Play Trading Knowledge to Trading Skill (video) After Hours (video) Trading is a game of Math Speed III Specific Trading Scenario (audio) Focus (on what is important) (audio&video) Pattern Recognition in STT (video) Range Play Breakout in LEH (video) Range Play (Boot Camp) Range Plays (audio&video) If/then Statements for Range Plays (audio) SMB Webcast Range Play on the Open Mini Range Play Apple Range Play Eliminating What Doesn't Work (nighttime reading) Fake Breakout (nighttime reading) Getting a Stock that You Really Want (nighttime reading)

Day 18

Speed II SMB Stocks In Play Getting a Stock that You Really Want (audio&video) Speed III Specific Trading Scenario (audio) Momentum Big Offer Taken (video) Doubling up in MBT (video) Consolidation Breakout (after gap-up on Strong Earnings) (video) Breakout Trade, Breakout Trade Lecture 2 SMB Webcast Breakout Trade, Breakout Trade Lecture 2 (video); Breakout Q&A (video) Range play breakout (video) Fake breakout (video) Slow to Develop play (video) Retail Buying (nighttime reading) Buying on the Bid and Selling on the Offer (nighttime reading) Breaking News on Stock or Market Play (nighttime reading)

Day 19

Speed III SMB Stocks In Play Sharing Your Work with Your Mentor Breaking News on Stock or Market Play Breaking News (video) Momentum wfc by CMU (video) Momentum Examples by MCL (video) Momentum LEH by DLE (video) Speed III Specific Trading Scenario (audio) One Good Trade (video) An Example of a Momentum Trade (video) Momentum FNM by Dov (video) Momentum FNM by Gman (video) Momentum MER by Scuba (video) Momentum ADI (OGT) by ALJ (video) Momentum Trading (video) Momentum HK by DLE (video) Momentum FNM by CMU (video) SMB Webcast An Intraday Comeback (“Don’t Call it a Comeback”) (nighttime reading) Earnings Season (nighttime reading) Pattern Recognition- An Example (nighttime reading)

Day 20

Speed II SMB Stocks In Play An Intraday Comeback (audio& video) Speed III Specific Trading Scenario (audio) Earnings Season (video) Pattern Recognition Trading Plays (Boot Camp) SMB Webcast Pattern Recognition Trading Plays Audio Lecture # 2 (audio)

Paying for Information (nighttime reading) An Explosive Move-GME (nighttime reading) How to Play a Stock Bounce (nighttime reading) How to Play a Futures or Market bounce Finding a Bottom-An Example

(HANS) (nighttime reading) Developing a Detailed Trading Plan in the AM (nighttime reading) Weekend videos:

Shorting After a Pullback by JJ and JP Trading a Follow Through by Mike and Pat An Upmove by Beyda and Making Sure Your Stock is in Play by John Getting In Front of a Big Bid by Steve

Day 21

Speed II SMB Stocks In Play SMB Pre-Market Mental Preparation, watch: SMB Pre-Market Mental

Preparation Paying for Information (audio&video) Seeing the Tape from the Charts Adding Probability to Chart Plays Speed III Specific Trading Scenario (audio) An Explosive Move An Explosive Move-GME (audio) An Explosive Move (video) Different Lots, Different Plans LMT How to Add to Your Position (video) Strong Stock Short Term Overbought (video) Hold on the Open PDLI (video) Uptrend Plays, Buying into a Pullback Uptrend Lecture (video) SMB Webcast Uptrend Plays, Buying into a Pullback Positive Self Talk (nighttime reading) A Big Offer Stepping down and Then Lifting (nighttime reading) Quiz

Day 22

Speed III SMB Stocks In Play Pattern Recognition Plays (audio) Trading Lesson of the Week AMLN (video) SMB Radar Proper Execution of Scalp Plays Quiz: Proper Execution of Scalp Plays Speed III Specific Trading Scenario (audio) Positive Self Talk (audio & video) Proper Execution of Trade2Hold Plays Quiz: Proper Execution of Trade2Hold Plays Lower High/Higher Low, Opening Range Higher Low/Lower High (video) Climax Reversal CRM (video) SMB Webcast Lower High/Higher Low (audio) Guest Speaker Josh Brown (video) Taking a Rip (nighttime reading) Anatomy of a Disaster (nighttime reading) A Lower High (nighttime reading)

Day 23

Speed III SMB Stocks In Play Risk Seminar (audio&video) Speed III Specific Trading Scenario (audio) Your Order Ready to Pay Through a Level Better Stop Prices Can a Smaller Stop Carry More Risk Than a Large Stop Hit Weak Stock through its Support (video) Big Prints Lower (video) Consolidation, Flag Patterns SMB Webcast Consolidation Pattern (audio) Consolidation (video) Flag Pattern (audio&video) Flag Pattern in WSM (video) Stocks with which you Struggle (nighttime reading)

Day 24

Speed III SMB Stocks In Play Stocks with which you Struggle (audio&video) Choosing a Basket of Stocks Improving Our Performance By Watching (video) Speed III Specific Trading Scenario and Our Fundamentals (audio) Taking a Rip (audio&video) Screen Recorder Sports Center - The Tape (video) Thinking Like the Big Player Thinking Like the Big Player in SVNT (video) Always Analyzing your Positions ELN Always Thinking (video) Plays that you Need to Be In SMB Webcast Behavior on Our Desk Trades2Hold by Scuba Steve (video) Trades2Hold of the Week of January 4th 2010 (video) Trades2Hold of the Week of March 1st 2010 (video) Trades2Hold of the Week of April 12th 2010 (video) Confidence (nighttime reading) Trading as Mental Warfare (nighttime reading) Hunt Orders- An Example (CEPH) (nighttime reading)

Day 25

Speed III SMB Stocks In Play Hunt Orders Hunt Orders - An Example in CEPH Hunt Orders (video) Small Hunt Order in SVNT (video) Hunt Order HOT at 63.5 (video) Quiz: Test your Knowledge on White Prints and Hunt Orders Speed III

Specific Trading Scenario and Our Fundamentals (audio) GMAN's Chop Tracker (instructions for LS) Gman's Chop Tracker Tutorial (video) White Prints (video) Combinatorial Explosion (video) Sharing Information Hunt Order NKE (video) SMB Webcast A Fade Trade-An Example (RSH) (nighttime reading) Download & Install GMAN Trade Analysis (nighttime reading) Emotion Free Trading If/Then Statements (nighttime reading) Important Questions Before Each Trade (nighttime reading)