Risk Disclosures & Legal Notices

Trading stocks involves substantial risk of loss and is not suitable for all investors. You should only trade with capital you can afford to lose. The risk of loss in trading can be substantial — past performance is not indicative of future results, and there is no guarantee that any trading strategy will be profitable.

The value of stocks and other securities can go down as well as up, and you may receive back less than you invest. Short selling involves theoretically unlimited risk, as the price of a stock can rise without limit. Margin, short selling, and leveraged instruments all carry additional risks beyond those of buying and holding stock.

1R Lock™ is structured as an end-of-day program. Trades are entered at or near market close (4:00 PM Eastern) and are held overnight into the next session. This creates inherent exposure to overnight gap risk that all members must understand before trading.

Gaps can be caused by: earnings announcements, economic data releases (CPI, NFP, GDP, etc.), Federal Reserve decisions and communications, geopolitical events, overnight news affecting specific companies or sectors, and broad market futures moves during overnight hours.

How gaps affect your positions:

• A gap in the direction of your trade may accelerate your target being reached — this can work in your favor.
• A gap against your position may cause your stop loss to be bypassed entirely, resulting in a loss that exceeds your planned 1R.

Gap risk is an inherent and accepted characteristic of overnight trading. It cannot be fully eliminated. The ½+½ structure of the program partially mitigates this risk by reducing position size in half after 1R is locked, but it does not eliminate exposure on the remaining half-position.

Members who experience a gap significantly in their favor at the open may use their discretion to close 10 to 20% of their position before the prescribed target is reached. This is a personal risk management decision and is not reflected in the official track record.

All members acknowledge and accept overnight gap risk as a condition of participation. The Pattern Trader LLC bears no responsibility for losses that exceed planned risk levels due to overnight gap events, earnings announcements, or any other after-hours or pre-market price movements.

1R Lock™ provides trade setups with defined entry prices, stop losses, and profit targets. These levels represent market conditions at the time of posting and are not guaranteed execution prices. Your actual fill prices may differ due to slippage, bid-ask spreads, market volatility, broker execution quality, order timing, and other factors beyond the control of 1R Lock™ or The Pattern Trader LLC.

You are solely responsible for:

• Placing all orders in your own brokerage account
• Verifying the accuracy of your order details (ticker, share count, order type, price)
• Ensuring your broker can execute the trade (including short sales, which require a margin account and may not be available for all securities)
• Monitoring your open positions and managing your stops
• All losses or gains resulting from your trading activity

1R Lock™ and The Pattern Trader LLC bear no responsibility for execution errors, broker outages, order rejections, short-sale restrictions, margin calls, or any other issues arising from your interaction with your brokerage firm.

In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. The ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can adversely affect actual trading results.

The 1R Lock™ program is for educational purposes only. Nothing provided through this program constitutes investment advice, a solicitation to buy or sell securities, or a recommendation of any specific trading strategy.

Mark Shawzin and The Pattern Trader LLC are not registered investment advisers, broker-dealers, or financial planners. References to former FINRA Series 7 and Series 3 licenses reflect credentials that are no longer active. You are solely responsible for your own trading decisions.

The information regarding Pattern Day Trader rules, FINRA regulations, and account types is provided for general educational purposes only and should not be construed as legal or financial advice. Rules and requirements may vary by broker, account type, and jurisdiction. Always consult your brokerage firm and, if necessary, a qualified financial professional before making trading decisions.

While 1R Lock™ is structured as a swing trading program with overnight holds, the classification of trades and applicable regulations are determined by your broker and the relevant regulatory authorities — not by 1R Lock™.

Rules and requirements may vary by broker, account type, jurisdiction, and individual circumstances. It is your responsibility to understand and comply with all applicable trading rules and regulations. Always consult your brokerage firm and, if necessary, a qualified financial or legal professional for advice specific to your situation.

The Pattern Trader LLC publishes performance records and trade logs for educational transparency. These records reflect hypothetical or tracked results assuming all signals are taken as communicated and managed according to the program's stated methodology.

Members who cherry-pick, miss entries, or deviate from the program's rules shall have no basis to claim that the published performance record is inaccurate or misleading as it applies to them. The Pattern Trader LLC accepts no liability for individual member results that differ from the published performance record due to selective execution or deviation from program methodology.

Some program setups include short sale recommendations. Short selling involves borrowing shares and selling them with the intention of repurchasing at a lower price. This strategy carries additional risks and limitations:

• A margin account with short selling privileges enabled is required for all short trades — including short sales of individual stocks and broad market ETFs (QQQ, SPY, DIA, IWM).
• Not all brokers offer the ability to borrow shares for short selling. Availability varies by broker, account type, and the specific security.
• Shares designated as "hard to borrow" (HTB) may be unavailable for short selling or may incur significant borrowing costs that affect the economics of the trade.
• The Pattern Trader LLC has no control over, and accepts no responsibility for, any broker's ability or inability to source shares for short sale.
• If your broker does not support short selling or cannot locate shares for a specific security, you should not attempt to execute that trade.
• Members are responsible for understanding their own broker's capabilities, margin requirements, and restrictions before attempting to execute any trade.

To the fullest extent permitted by applicable law, The Pattern Trader LLC, its owner Mark Shawzin, and all affiliated parties shall not be liable for any direct, indirect, incidental, special, consequential, or exemplary damages, including but not limited to: trading losses, lost profits, lost data, business interruption, or any other commercial damages or losses arising out of or related to your use of the 1R Lock™ program, the Position Size Calculator, the Performance Dashboard, or any other materials or services provided.

This includes but is not limited to damages arising from: market conditions, broker failures or outages, execution errors, slippage, technology failures, internet connectivity issues, overnight gap events, force majeure events, or any other circumstances beyond the reasonable control of The Pattern Trader LLC.

By subscribing to and using the 1R Lock™ program, you acknowledge that you understand the risks involved in trading securities, that you are solely responsible for your own trading decisions and results, and that you will not hold The Pattern Trader LLC, Mark Shawzin, or any affiliated parties responsible for any losses you may incur.

All trade setups are posted exclusively on the Skool.com platform and are timestamped for transparency. By subscribing, you acknowledge that you have read and understood all disclosures on this page.

1R Lock™ is a trademark of The Pattern Trader LLC. The 1R Lock™ Structured End-of-Day Trading Program, including but not limited to: the 1R Lock™ Position Size System, the ½+½ position-splitting methodology, all associated trading methodologies, the Position Size Calculator, the Performance Dashboard, page designs, layouts, educational content, branding, and all related business assets are the proprietary intellectual property of The Pattern Trader LLC.

No part of this program, its materials, design, structure, methodology, or content may be reproduced, copied, distributed, transmitted, displayed, published, adapted, reverse-engineered, or otherwise used in any form or by any means without the prior written consent of The Pattern Trader LLC. Violation of these terms may result in immediate termination of membership and may be subject to legal action under applicable intellectual property, copyright, and trade secret laws.