Welcome to the Beginners in Stock Trading Newsletter! Over the next several months, you’ll receive expert insights, proven strategies, and real-world examples from some of the greatest stock traders in history.
Every newsletter has 2 sections. The 1st section is devoted to learning. Each building on the previous day’s lesson in logical order. Giving you a full, free trading education in under ten minutes a day.
Missed a day? You can find all of the previous newsletters online to catch up or if you joined later.
The 2nd half of the newsletter is a briefing on 1-3 stocks in the news. Read it. Then click on the links to see the corresponding charts inside the original articles. This will accelerate your ability to read the charts.
Learning to how to trade will change your life.
Daily Lesson(each builds onto the next)
Nicolas Darvas, a professional dancer turned millionaire trader, developed a powerful yet simple trading method that allowed him to turn $25,000 into $2 million in just 18 months. His Darvas Box Theory is still one of the best ways to ride trends higher.
“I made my first big stock market profits by learning to box my stocks. The stocks themselves told me when to buy and when to sell.”
“It was never my thinking that made the big money for me. It was my sitting.”
The Darvas Box Theory teaches you how to identify strong stocks, enter at the right time, and hold as long as the uptrend remains intact.
📊 What is the Darvas Box Theory?
🔹 Darvas' key discovery: The best stocks move in a stair-step pattern, forming boxes of price consolidation before breaking out and climbing higher.
🔹 The 3 Key Parts of the Darvas Box System:
✅ Box Formation: The stock trades in a narrow range, forming a rectangle (box) on the chart.
✅ Breakout: The stock moves above the box’s high, signaling a strong uptrend.
✅ Trailing Stop: The bottom of the box becomes the new stop-loss level—if the stock drops below this, it’s time to exit.
📖 Example:
Texas Instruments (TI) in the 1950s – Darvas bought it as it broke out of a box at $200 → Held as it formed higher boxes → Sold at $1,000 for a 400% gain!
📈 How to Use the Darvas Box to Trade Trends
📌 Follow These 3 Steps to Ride Winning Stocks Longer:
✅ Step 1: Identify a Stock in an Uptrend
The stock should be making higher highs and higher lows.
✅ Step 2: Draw the Box
The top of the box = Resistance level (previous high).
The bottom of the box = Support level (previous low).
✅ Step 3: Buy the Breakout Above the Box High
Enter when the stock moves above the previous high with strong volume.
📖 Example:
Tesla (TSLA) in 2020-2021 formed multiple Darvas Boxes before breaking out and gaining 1,000%+.
📖 O’Neil’s Take on Darvas Boxes:
“Darvas was right—the best stocks move in stair-step patterns. The key is identifying strong breakouts and holding them.”
📉 When to Exit a Stock Using Darvas' Method
🚨 Red Flags That a Stock’s Uptrend is Ending:
❌ Stock drops below the lower box boundary → Trend is breaking.
❌ Stock fails to form new higher boxes → Losing momentum.
❌ Breakout occurs on low volume → Weak confirmation.
📖 Jesse Livermore’s Warning on Holding Too Long:
“The market does not beat them. They beat themselves by selling too early or holding too long.”
📖 Example:
Netflix (NFLX) in 2022 broke below a Darvas Box → Lost 75% of its value in months.
🎯 Action Step
✅ Go to TradingView or Finviz.
✅ Identify a stock forming a Darvas Box pattern.
✅ Mark the breakout level and stop-loss level.
👉 Write your observations in your trading journal.
⏭️ Coming Up Next:
Tomorrow, we’ll cover how to identify high-probability breakouts that actually work.
🚀 Stay disciplined & keep learning!
Train Your Eyes On This Pattern(of the week)
Cup with Handle
📌 Understanding stock price growth:
Look up the historical stock chart of Apple (AAPL) from 2004 to 2024. Notice how the stock’s price has risen steadily over time with some pullbacks.
Use these market tools to scan for and review stocks:
✅ MarketSmith (MarketSurge) – Premium Market Analysis and Scanner Tool
✅ Charts.com – Budget-Friendly Charting Option
✅ TradingView – Free & Subscription Stock and Crypto Charts
✅ DeepVue – MarketSurge Inspired Analysis and Scanner
👀 Seeing real-world stock patterns helps train your eye for long-term trends.
Our Sister Newsletter. Because everyone’s a Beginner in something.
News
📈 STOCKS SURGE AS TRUMP SHIFTS TARIFF GEARS
What a start to the week! The market ripped higher Monday after some surprise moves on tariffs from the Trump team. Big techs got a major break—and Wall Street cheered.
The Dow jumped nearly 400 points. Nasdaq popped almost 2%. And yeah... Apple soared 4.5%. The reason? $385 BILLION worth of electronics imports, including iPhones and servers, just got a tariff pass. But don’t get too comfy—new levies on semiconductors might still hit in a month or two.
🚀 PALANTIR, DELL, AAPL LEAD MONDAY’S TECH TAKEOVER
Tech stocks came out swinging! Palantir exploded above a key benchmark. Dell ripped 6%. And Apple flexed hard with a 4.5% gain—its best in weeks. 🍏
Even better? Growth stocks crushed it. The IBD 50 ETF surged nearly 3%, and the Nasdaq led all major indexes. Meanwhile, small caps showed signs of life, and every S&P 500 sector turned green.
💰 GOLDMAN SACHS CRUSHES EARNINGS — STOCK STILL STRUGGLING
Goldman Sachs beat the Street! $14.12 a share in earnings vs. $12.33 expected. Revenue also beat. Credit losses were lower too. So why isn’t the stock flying?
Simple: It’s stuck. Even with the earnings boost, GS is still sitting below its 50-day and 200-day lines. A solid quarter, but the chart’s not ready (yet).
Stock Spotlight
Primo Water Corporation (PRMW)
Hydrating More Than Just Households — It’s Quenching Investor Potential Too
Looking for a refreshing stock idea? Meet Primo Water Corporation (PRMW) — the name behind well-known hydration brands like Sparkletts, Alhambra, and Crystal Rock. While you might not think about your water cooler beyond your next refill, Primo has quietly built a liquid empire in the beverage service industry.
🧊 Why PRMW Deserves a Sip of Your Portfolio:
Essential Service: Water is non-discretionary — people and businesses keep the deliveries flowing regardless of economic cycles.
Recurring Revenue Model: With subscription-based water delivery and rental of dispensers and coffee machines, Primo enjoys steady cash flow.
North American Expansion: Operating in both residential and commercial markets across the U.S. and Canada, Primo is scaling smart, backed by a portfolio of local and trusted brands.
Sustainable Edge: Primo promotes eco-friendly hydration via water refill stations and returnable bottle programs — a win for both consumers and ESG-focused investors.
📈 Trading Takeaway:
PRMW may not be a flashy tech stock, but its defensive qualities and stable growth potential make it a perfect anchor pick during market volatility. As consumers lean into convenient and sustainable hydration, Primo is well-positioned to capitalize.
Refer a friend
5 referrals How to Make Money in Stocks Complete Investing System by O’Neill
10 referrals How to Make Money in Stocks Success Stories by O’Neill
15 referrals How to Make Money in Stocks, Getting Started by Matthew Galgani
30 referrals Trade Like a Stock Market Wizard by Mark Minervini
50 referrals Lifetime access to the upcoming video courses and 50% off live events and digital products
How to Make Money in Stocks Set
Thank you for reading. We’re all Beginners in something!
-Beginners in Stock Trading Team
This newsletter is for educational and informational purposes only. The content herein should not be considered financial advice, investment advice, trading advice, or a recommendation to buy or sell any securities or financial instruments.The strategies, opinions, and examples shared reflect the personal views and historical references from publicly available sources, including the works of William J. O’Neil, Jesse Livermore, Mark Minervini, and other professional traders.Trading in the stock market involves risk, including the risk of losing capital. Past performance is not indicative of future results. You should conduct your own due diligence and consult with a licensed financial advisor or registered investment professional before making any investment decisions.
We do not guarantee any specific outcome or profit. You are solely responsible for your own financial decisions and trading actions.