We believe it is imperative that you read and fully understand the following risks of trading and investing:

GENERAL RISKS OF TRADING AND INVESTING

All securities trading, whether in stocks, options, or other investment vehicles, is speculative in nature and involves substantial risk of loss. We encourage our subscribers to invest carefully and to utilize the information available at the websites of the Securities and Exchange Commission at http://www.sec.gov and the Financial Industry Regulatory Authority (FINRA) at http://www.finta.org. You can review public companies filings at the SEC's EDGAR page. FINRA and its predecessor entities have published information on how to invest carefully at its website. We also encourage you to get personal advice from your professional investment advisor and to make independent investigations before acting on any information that we publish. Most of our information is derived directly from information published by companies or submitted to governmental agencies or which is otherwise publicly available. We do not independently verify any of this information. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you may take in reliance on our statements, ratings, or recommendations. Unlike bank accounts, investments in securities are not federally insured against loss of principal. We make no warranties of any kind regarding our analyses, ratings or any other contents of our websites, which you are utilizing at your own risk.

1. You may lose money trading and investing.
Trading and investing in securities is always risky. For that reason, you should trade or invest only "risk capital" -- money you can afford to lose. As a rule of thumb, we believe that you risk no more than 10% of your liquid net worth -- and, in many cases, you should risk less than that. Trading stock and stock options involves HIGH RISK and YOU can LOSE a lot of money.

2. Past performance is not necessarily indicative of future results.
All investments carry risk and all trading decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of trading or investing they choose to do.

3. Hypothetical or simulated performance is not indicative of future results.
Unless specifically noted otherwise, all profit examples provided in the our websites and publications are based on hypothetical or simulated trading, which means they are done on paper or electronically based on real market prices at the time the recommendation is disseminated to the subscribers of this service, but without actual money being invested. Also, such examples do not include the costs of subscriptions, commissions, and other fees and transaction costs, or examples of other recommendations which would have resulted in losses had our recommendations and timing been utilized. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity (discussed below). Simulated trading programs do not reflect human factors that come into play when making actual purchases, sales and other investment decisions involving real money in the market. We make no representations or warranties that any account will or is likely to achieve profits similar to those shown, because hypothetical or simulated performance cannot guarantee any profits and are not indicative of any future results.

4. Don't enter any trade without fully understanding the worst-case scenarios of that trade.
Trading securities like stock options can be extremely complicated, so make sure you understand these trades before entering into them. For example, aggressive positions in options have a greater probability of losing, while less aggressive positions are less likely to yield substantial profits. Similarly, far out-of-the-money options are unlikely to finish in the money, and options purchased close to their expiration dates are very high-risk. Also, options involve a cost factor for the time until the expiration date, as you are paying for the right to buy or sell a security for a certain period of time without paying the purchase or sale price. You should not make any investment unless you fully understand not only the financial risks involved, but also the mechanics of your investment.
5. We are a financial publisher and do not provide personalized trading or investment advice.
We are a financial publisher. We publish information regarding companies in which we believe our subscribers may be interested and our reports reflect our sincere opinions. However, the information in our publications is not a personalized recommendation to buy, hold, or sell securities or any particular security. As a financial publisher who has elected not to be registered as an investment advisor with the Securities and Exchange Commission, we do not and will not give personalized trading or investment advice to any of our subscribers. If a subscriber chooses to engage in trading or investing that he or she does not fully understand, we may not advise the subscriber on what to do to salvage a position gone wrong. We also may not address winning positions or personal trading or investing ideas tailored to a particular subscriber. Therefore, subscribers will need to depend on their own mastery of the details of trading and investing in order to handle problematic situations that may arise, including the consultation with their own brokers and investment and financial advisors as they deem appropriate.

6. Profits can be lost if they are not taken at the right time.
Subscribers are advised to take profits at whatever point they deem optimal, regardless of the profit target set in any given recommendation. Strategy services such as those we offer provide recommendations. Subscribers are free to follow the recommendation, follow it in part, or ignore it altogether. If a subscriber believes a given profit is at risk, the subscriber should take the profit. You must understand that profits can be lost if they are not taken at the right time. Similarly, if a subscriber feels a position is likely to lose value, or a losing position is likely to fall further, the subscriber can choose to exit at any time to preserve capital. The final decision as to when to take profits or minimize losses remains in the sole discretion of the subscriber

GENERAL RISKS OF OPTIONS TRADING

Buying or selling stock options is not suitable for many people, and you should not trade options unless you fully understand the risks, rights, and obligations of options trading. Use only money you can afford to lose in options trading.

1. You should not sell options on stocks unless you can meet margin calls and survive large financial losses.
When you buy an option, you risk losing the entire purchase price plus the commissions paid, but not more since purchasing options on margin is not allowed. The amount you spend up front is the maximum you can lose. However, when you sell an option, you may be required to deposit additional margin if the price of the commodity moves adversely. You should not sell options unless you can meet margin calls and survive large financial losses. In cases where the exchange has difficulty finding buyers, the option seller is subject to the full risk of the position until the options expire.

RISKS OF INVESTING IN SECURITIES

Investments in securities always entail some degree of risk. Be aware that:

1. Some investments in securities cannot easily be sold or converted to cash. Check to see if there is any restriction, penalty or charge if you mustneed to sell an investment quickly.

2. Investments in securities issued by a company with little or no operating history or published information involves greater risk than investing in a public company with an operating history and extensive public information. There are additional risks if that is a low priced stock with a limited trading market, e.g., so-called penny stocks.

3. Investments in securities, including mutual funds, are not federally insured against a loss in market value.

4. Securities that you own may be subject to tender offers, mergers, reorganizations, or third-party actions that can affect the value of your ownership interest. Pay careful attention to public announcements and information sent to you about such transactions. They involve complex investment decisions. Be sure you fully understand the terms of any offer to exchange or sell your shares securities before you act. In some cases, such as partial or two-tier tender offers, failure to act can have detrimental effects on your investment.

The greatest risk in buying shares of stock is having the value of the stock fall to zero. On the other hand, the risk of selling stock short can be substantial. "Short selling" means selling stock that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short selling is a legitimate trading strategy for some investors, but assumes that the seller will be able to buy the stock at a more favorable price than the price at which they sold short. If this is not the case, then the seller will be liable for the increase in price of the shorted stock, which could be substantial.

SPECIFIC RISKS OF STOCK OPTIONS TRADING

When you open a stock option account, you should receive a booklet entitled "Characteristics and Risks of Standardized Options," which is also available on the Chicago Board Options Exchange website at http://www.cboe.com/resources/intro.asp. This booklet contains an in-depth discussion of the characteristics and risks associated with stock options trading. We strongly encourage you to carefully read and understand this information.

1. Assignment of exercise to writers.
As a writer of a stock option, you may be assigned an exercise at any time from the date of sale through approximately two days after the date of expiration. The consequences of being assigned an exercise depend upon whether the writer of a call is covered or uncovered, as discussed below. Since an option writer may not be informed of the assignment of exercise until up to two days after expiration, special risks can come into play. For example, an option writer who sells out their underlying position upon expiration may find out the next day that they have to surrender stock they do not now own.

2. Risk of unlimited losses for uncovered writers of call options.
A "naked" or uncovered writer of a call option is at substantial risk should the value of the underlying stock move unfavorably against the position. For a naked call writer, the risk of loss is theoretically unlimited. The obligation of a naked writer that is not secured by cash to meet applicable margin requirements creates additional risks. A harsh adverse move in stock prices can create steep margin call scenarios in which a brokerage firm may liquidate other holdings in the writer's account(s) to cover the option. Since pricing of options tends to be magnified relative to the underlying stock, the naked writer may be at significantly greater risk than a short seller of the underlying stock.


3. Deep out-of-the-money options carry high risk of loss.
Although purchasing stock options at strike prices significantly above or below the current market price can be very inexpensive, you are at high risk of losing your money. There are two versions of deep out-of-the-money options:

• A deep out-of-the-money call is an option to purchase 100 shares of stock at a price far above the current market price.
• A deep out-of-the-money put is an option to sell 100 shares of stock at a price far below the current market price.

Although these options seem inexpensive, the chances of making a profit on such transactions are extremely low. Therefore, novice traders should avoid buying deep out-of-the-money options.

4. Out-of-the-money options near their expiration date carry a high risk of loss.
The closer you buy an out-of-the-money option to its expiration date, the less likely it is to end up profitable. Although these options are cheap, in order to win in such situations, you will need precise timing and the occurrence of a major event that significantly moves the underlying future in your favor. Therefore, the risk associated with these options is high and you are likely to lose your entire investment in these positions.

Each strategy service we provide will offer a special discussion of risks. As you move through the educational materials that teach you how to use each service, be sure to carefully read the risks section. It elaborates on risks specific to the types of recommendations you might see in that service. Do not enter any trade without understanding all risks associated with that type of trading.

Conclusion:
Once again, we stress the importance of understanding all of the risks of any form of trading or investing that you choose to do. One should fully understand the worst-case scenario prior to trading or investing real dollars. Past performance is not necessarily indicative of future results. You take full responsibility for all your trading decisions, and should understand the risks and mechanics involved before making any investment decision.