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Every horse should be exercised through training at least once a month. The only exception is Pastured horses; you can find more information about Pasture here.

Horses can be exercised from their Care page (linked on the left side of each horse's main page). Horses who have completed exercise show a green checkmark beside Exercise on their Care page and in the T column on the Stable page.
Yearlings should be trained every month, but can only be trained once per month.

Yearlings can be exercised with Groundwork (will improve any random stat where possible, up to a max of 3) and Grooming (will improve coat condition if eligible for and opted-in to Color Shows). Grooming can only be done as the first exercise of the month.

Yearlings can also gain benefits when they have an assigned buddy; be sure to check the Buddies page for more information.
When you open the Care page, below the Feeding options, you'll see multiple options for Exercise. These include training type, jockey, surface, and target distance. Your contracted and assigned jockey’s name should be here already.

Horses can be trained on any Surface/Gait and Distance to maintain proficiency, but horses are genetically inclined to prefer certain Surfaces/Gaits and Distances. You can choose which Surface/Gait/Distance to improve each time you exercise your horse, or you can Lock training to a specific Surface/Gait/Distance. To learn more about what surface/gait and distance is best for training, visit the Distance & Surface page.

It is important to consider Maturity, Condition, Energy, and Stats when choosing which type of training to use. Some types of training take more energy than others do, some workouts are designed to max certain stats, and some workouts affect distance and surface/gait familiarity. For more information on each type of workout, check out the tooltip link at the top of the Care page called Training Help.

If you're training a young horse for the first time, this guide might also be helpful.

Any horses that are actively racing should try to do training that doesn't cost any extra Energy. You are able to do one Maintenance, one Interval, or one Grooming without using any Energy. Depending on your horse’s Athleticism, a Buddy Workout may also not take Energy if done as the first training of the month. Gate Training does not take Energy but decreases Morale and therefore isn't as beneficial for stat-maxed and actively racing horses. You may decide to train your horse further, but it will require more Energy, regardless of which type of training you choose.

Grooming may only be used as the first training of the month. Grooming is available whether your horse is eligible for and opted-in to Color Shows, as Grooming can also raise Rest and Morale in addition to Coat Condition.
Training Refusals
Exercise takes Morale and Consistency into consideration, and horses with low Morale or poor Consistency can refuse to train (fail to learn and gain stats/"You Tried Your Best").

If your horse has low Morale, you may need to consider different training options! Feeding Focus, or Grooming as the first exercise of the month will raise Morale. Selecting Maintenance or Long Gallop, or a Buddy Workout as the type of training will also raise Morale and cannot be refused. You may need to do a combination of these options to raise Morale high enough to successfully complete other types of training.

Consistency is less important but will increase naturally if you have Training Skill 4 as horses progress through training. Over time, most horses have decreased odds of refusing training.

The Intelligence gene also plays a small part in training. Whilst it does not cause training refusals, it can mean a horse does not gain stats despite completing a successful training session. Horses with higher Intelligence learn faster and gain stats more consistently, compared to horses with lower Intelligence who will ultimately take longer to max their stats.
Rehabilitation and Stall Rest
When a horse is injured, they will require stall rest and/or rehabilitation before they can resume normal training.

Stall Rest is exactly as it says; you will not be able to train your horse during the time that they are on Stall Rest. Once your horse has recovered enough to finish Stall Rest, or has a minor enough injury that they can begin Rehabilitation immediately, you will be given special Rehabilitation Exercise options. Your horse can only do one Rehabilitation session per month. These options are covered in more detail in the Injury section.
Retired horses can use Turnout, Grooming, or Groundwork exercise options.

Turnout or Grooming may only be used as the first training of the month. Turnout may improve Condition, as well as potentially improve Fertility and lower Pregnancy Risk. Grooming improves Coat Condition for horses who are eligible and opted-in to Color Shows. Groundwork can be completed multiple times per month, and only improves Condition. Groundwork is the best option for most retired horses as it will ensure they maintain high Condition.

Training retired bloodstock can give you valuable level experience as well!