5-Step Investing Formula

Online Course Manual

www.investools.com

© 2005 INVESTools Inc. All rights reserved.

1

Section 1 of 11

Getting Started

THE 5-STEP INVESTING FORMULA

Getting Started

page 2 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

SECTION 1 Getting Started

Logging into the INVESTools Investor Toolbox ....................................... 4

Support Links ........................................................................................ 5

Workshop Review .................................................................... 6

Account Information ................................................................. 6

Subscription Renewal .............................................................. 7

Technical Support .................................................................... 7

Contact an Instructor ............................................................... 8

Section Contents

THE 5-STEP INVESTING FORMULA

Getting Started

page 3 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

INTRODUCTION

SECTION 1 Getting Started
Logging into the INVESTools Investor Toolbox
Support Links

Workshop Review

Account Information

Subscription Renewal

Technical Support

Contact an Instructor

SECTION 2 Introduction to Investing
Tolerance for Risk

Setting Goals

Asset Allocation
Tax Exposure

Brokerage Firms
Introduction to the 5-Step Investing Formula

THE 5-STEP INVESTING FORMULA

SECTION 3 Step 1: Searching for Stocks
Using a Prebuilt Search

Navigating the List of Stocks

SECTION 4 Step 2: Industry Group Analysis
Top-Down Analysis
Big Chart

AutoAnalyzing All Stocks in a Group

Best & Worst Industries List

SECTION 5 Step 3: Fundamental Analysis
Phase 1
Phase 2

Price Pattern

Volatility

Zacks Report

Market Guide

News

AutoAnalyzer™

SECTION 6 Step 4: Technical Analysis
Technical Indicators

Moving Averages

MACD

Stochastics

Volume

Support & Resistance

Buy Signals
Money Management

Sell Stop Orders

How Many Shares to Buy

Sell Signals
Insider Trading

SECTION 7 Step 5: Portfolio Management
Creating a Portfolio
Managing Your Portfolio

Paper Trading Account

BONUS SECTION

SECTION 8 Bonus Topics
TurboSearch
Index Tracking Stocks / Exchange-Traded Funds

Dow Jones Industrial Average—

The Diamonds (DIA)

S&P 500—The Spider (SPY)

NASDAQ—The Qs (QQQQ)

SECTION 9 Introduction to Options
Advantages/Risks of Options
Leverage
Call Options
Put Options
Covered Calls

SECTION 10 Appendix
Phase 2 Stock Scoring Form
Phase 2 Quick List for Zacks Report and

Market Guide

Investment Tracking Record

SECTION 11 Glossary

Course Overview

THE 5-STEP INVESTING FORMULA

Getting Started

page 4 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

Getting Started

Logging into the INVESTools
Investor Toolbox

Before you can use the member features of
the Investor Toolbox Web site, you must first:

Step 1: Log on to the Internet through

your Internet Service Provider.

Step 2: Go to the Investor Toolbox home

page located at:

www.investortoolbox.com

Bookmark this page and put it in
your list of bookmarks or Favorite
Places file (depending on your
browser) so you can access it
quickly and easily.

Step 3: Click on the “login” button located

on the toolbar in the upper left
corner.

Step 4: This brings up a log-in box. Enter

your Investor Toolbox User ID and
Password.

Remember: use only lowercase
letters for your User ID and
Password.

Note: Once you’ve logged in, the “login”
changes to “logout.” To log out of the Web
site, click on the “logout” button.

THE 5-STEP INVESTING FORMULA

Getting Started

page 5 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

If you’re not sure whether or not you’re
logged into the Web site, look at the upper
left corner of the page. If it reads “logout,”
you are logged in.

After you log in, you are automatically
taken to the Investor Toolbox home page
To return to the home page from anywhere
within the Web site, click on the INVESTools
Investor Education logo located in the upper
left-hand corner of the page.

Support Links

Log on by following steps 1-4 on the
previous page. Click on the “Support” tab
located on the main toolbar.

This brings up the Support pages, where
you can select from the following links:

• Workshop Review

• Account Information

• Renewal Information

• Technical Problems

• Web Site Questions

• Contact Us

THE 5-STEP INVESTING FORMULA

Getting Started

page 6 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

Workshop Review
In this area you can get a quick review
of what is taught in the workshop. Select
which section of the manual you would like
to review and click on that link to review
any of the topics in that particular area.

Account Information
Here you can review and update your
personal information, such as name,
address, telephone number, and e-mail
address. You can also check your Investor
Toolbox membership expiration date.

Click on the “Update” button when you
have finished making any changes. This
automatically updates the information in
the database.

THE 5-STEP INVESTING FORMULA

Getting Started

page 7 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

Renewal Information
Go here for information on renewing the
Investor Toolbox services or to renew your
services online using our secure server.

Technical Problems
This area is where you can go for help with
computer-related problems. It contains
several links to the most common problems.
When you click on a specific question, it
takes you to the instructions. Here you are
walked through the easy-to-follow steps to
fix the problem you are experiencing.

THE 5-STEP INVESTING FORMULA

Getting Started

page 8 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

Web Site Questions
Here you can read answers to frequently
asked questions regarding both the Investor
Toolbox and the investing program. Simply
click on the link related to a question
you’re interested in to view the answer.

Contact Us
This area is where you can receive
additional support as well as more specific
help from workshop instructors and our
Investor Toolbox technical representatives.
Simply click on the appropriate link in the
text. To e-mail a workshop instructor, click
on the final link under “E-mail a workshop
instructor.”

THE 5-STEP INVESTING FORMULA

Getting Started

page 9 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

On the Contact Us workshop instructors
e-mail page, select the workshop instructor
you wish to e-mail from the drop-down
menu, and then enter your name in the
“From” field and your e-mail address in
the “E-mail Address” field.

Note: Be sure you type your e-mail
address in correctly, as this e-mail
address will be where the reply is sent.
If you type in the wrong address, the
response will be sent to an address that is
not yours or that is an invalid address.

Enter a few words describing your inquiry
in the “Subject” field. Then type your
message in the larger space provided.

When you are finished, click on the “Send”
button. Your e-mail will be sent directly to
the person you have chosen.

Note: Technical support and administrative
personnel are not equipped or trained to
answer questions related to the workshop
as quickly or expertly as workshop
instructors. For questions concerning
instruction received at the workshop,
e-mail your workshop instructor, as he/she
is the most qualified to answer questions
related to subject matter covered at the
workshop.

Your Computer Settings

To enjoy optimal performance of the
Investor Toolbox Web site features, your
computer should have the following
updates and settings:

• Make sure you have the latest

version of your browser. Internet
Explorer or Netscape are the
recommended browsers for
viewing the Web site.

• Make sure you have set the correct

date, time, and time zone on your
computer clock.

THE 5-STEP INVESTING FORMULA

Getting Started

page 10 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

• Use the medium browser security

settings.

• Extra security features, such as a

firewall or an antivirus program,
can restrict your ability to use
the Web site. Adding the Investor
Toolbox Web site to your “trusted
site” list may help.

Note: If you have a firewall, you

may experience problems with
return e-mail from INVESTools
Investor Education. If you send
an e-mail to our support team or a
workshop director or instructor and
you do not get a reply, the most
likely reason is due to a firewall.
If this is the case, please call our
Technical Support team with your
questions.

• Make sure you have the latest

updates for your computer
operating system.

THE 5-STEP INVESTING FORMULA

Getting Started

page 11 of 11

© 2005 INVESTools Inc. All rights reserved.

www.investools.com

© 2005 INVESTools Inc. All rights reserved. Neither INVESTools or its subsidiaries nor any of their respective officers, employees, representatives, agents or independent
contractors are, in such capacities, licensed financial advisers, registered investment advisers or registered broker-dealers. Neither do they provide investment or financial
advice or make investment recommendations, nor are they in the business of transacting trades. Nothing contained in this manual constitutes a solicitation, recommendation,
promotion, endorsement or offer (buy or sell) by INVESTools, or others described above, of any particular security, transaction or investment.

Warranty disclaimer: The content included in this manual and the Investor Toolbox Web site is provided as is, without any warranties. Neither INVESTools
no any of its subsidiaries or affiliates make any guarantees or warranties as to the accuracy or completeness of, or results to be obtained from using, any of its
products or services (including any content therein). INVESTools and its subsidiaries and affiliates hereby disclaim any and all warranties, express or implied,
including warranties of merchantability or fitness for a particular purpose or use. Neither INVESTools nor any of its subsidiaries or affiliates shall be liable to you
or anyone else for any inaccuracy, delay, interruption in service, error or omission, regardless of cause, or for any damages resulting therefrom. In no event will
INVESTools nor any of its subsidiaries or affiliates be liable for any indirect, special or consequential damages, including but not limited to lost time, lost money,
lost profits or lost good will, whether in contract, tort, strict liability or otherwise, and whether or not such damages are foreseen or unforeseen with respect to any
use of our products or services. In the event that liability is nevertheless imposed on INVESTools or any of its subsidiaries or affiliates, such parties’ cumulative
liability for damages under any legal theory shall not exceed the amount of fees you paid for the particular product or service. This warranty addresses specific
legal rights; you may also have other rights, which vary from state to state. Some states do not allow the exclusion or limitation of incidental or consequential
damages, so the above limitation or exclusion may not apply to you.

The principals and employees of, as well as those who provide contracted services for, INVESTools have not promised, represented or warranted that you will earn a profit
when or if you purchase securities. It is recommended that anyone trading securities should do so with caution and consult with a broker before doing so. Past performances
of any principals and employees of, as well as those who provide contracted services for, INVESTools or any of its subsidiaries or affiliates may not be indicative of
futur performance. Securities used as examples presented in this manual or the Investor Toolbox Web site are used for illustrative purposes only and do not constitute a
recommendation to buy or sell individual securities. They should be considered speculative with a high degree of volatility and risk.

Trading securities can involve high risks and the loss of any funds invested; trading options can result in the loss of more than the original amount invested.

No part of this manual may be reproduced in any form, by any means, photocopying, electronic or otherwise, without written permission from the publisher.