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)
📝 Today, You’ll Learn:
✅ Why psychology—not strategy—is what separates consistent traders from the rest
✅ The internal habits that elite traders develop to stay focused, calm, and disciplined
✅ How to break emotional cycles that sabotage decision-making
✅ Real-world mindset frameworks from O’Neil, Livermore, and Minervini
📝 Opening Thought:
You can have a perfect system, a proven edge, and the best trading tools in the world…
But if your emotions hijack your execution, none of it matters.
Trading psychology is the bridge between strategy and results.
And while most people chase better indicators, elite traders build better minds.
📖 William O’Neil warned:
“The reason most investors don’t succeed isn’t lack of knowledge—it’s lack of self-discipline.”
🧠 What Is Trading Psychology—Really?
Trading psychology is the mental and emotional discipline that allows you to:
Follow your plan, even when it feels wrong
Cut losses when your ego wants to hold
Let winners run when fear whispers, “Take profits now”
Resist chasing after missing a move
Stay calm and objective when the market gets noisy
📖 Mark Minervini said:
“Trading is 80% psychological. You don’t need more information—you need more emotional control.”
🔄 How Most Traders Sabotage Themselves
❌ Fear
Stops you from entering when your setup appears
Causes you to sell too early—missing the meat of the move
❌ Greed
Leads to oversized positions
Keeps you in a winner long after signals say it’s time to lock profits
❌ Ego
Makes you ignore your stop
Makes you chase revenge trades after a loss
Refuses to admit when you're wrong
❌ Doubt
Freezes you on clear signals
Makes you second-guess your research
Destroys confidence over time
📖 Jesse Livermore warned:
“A trader must believe in their judgment—and accept when it’s wrong. The market doesn’t care about your opinions.”
🧘♂️ How Elite Traders Think Differently
Here’s what separates professionals from the majority:
✅ 1. They Pre-Decide Everything
Entry price, stop-loss, position size, exit target
No improvisation
They write rules for their worst moments, not their best
✅ 2. They View Trading Like a Business
They track stats, win rates, setups, and risk metrics
Every trade is just another execution of a system
One trade doesn’t define them—the process does
✅ 3. They Love Losing Small
Because it means they’re following the plan
Small losses = cost of doing business
Holding losers = emotional baggage
📖 Minervini said:
“My biggest mistake was not taking small losses faster. My biggest growth came when I learned to love the stop-loss.”
📊 Real Psychological Case Studies
✅ Trader A: Buys a breakout but exits on a 3% dip. It bounces and runs 50%.
Problem: fear and doubt overrode the plan
Solution: trust the pattern, honor your stop—not your feelings
✅ Trader B: Gets stopped out on 3 trades in a row. Doubts the strategy and overtrades to “make it back.”
Problem: ego + revenge = bigger losses
Solution: zoom out—evaluate process, not outcomes
✅ Trader C: Sees perfect setup. Can’t pull the trigger. Misses the move. Chases the next one and loses 8%.
Problem: hesitation followed by emotional reaction
Solution: trade on preparation, not emotion
🔁 The Power of Rules and Routines
The pros don’t think less—they think in systems.
Create personal rules like:
“I only take trades with risk/reward of 3:1 or better”
“I never move my stop after entry”
“If I break my rules, I take the next 3 days off”
“I review every week—even when I win”
📖 O’Neil emphasized:
“Discipline is what allows you to be right in the long run, even if you’re wrong today.”
📌 Trader’s Checklist: Mental Readiness Before the Trade
✅ Do I have a plan for entry, stop, and size?
✅ Am I willing to follow that plan without exception?
✅ Can I accept the loss before I enter the trade?
✅ Am I trading the chart—or my emotions?
✅ Am I reacting to the market—or rehearsing my process?
🎯 Action Step: Begin Your Mental Journal Today
✅ After every trade this week, write:
What was I feeling before, during, and after the trade?
Did I follow my rules? If not, why?
What would a pro have done differently?
✅ End each day by asking:
“What did I learn about myself today?”
“What can I do better tomorrow?”
📊 Tools to support your psychology:
[Notion or Evernote for journaling]
A simple pen-and-paper routine
🧠 Final Thought:
Most traders fail not because their strategy is wrong—but because their mind won’t let them follow it.
📖 Livermore said:
“The market is never wrong. Your mind is.”
Discipline is a skill. Build it like a muscle.
Because your edge isn’t just your method—it’s your mindset.
Train Your Eyes On This Pattern(of the month)
“Double Bottom”
📉 What Is a Double Bottom Pattern?
A double bottom is a bullish reversal pattern that signals a potential end to a downtrend and the beginning of a new uptrend.
It’s shaped like a “W” on a chart and forms when a stock tests a low price level twice, finds support each time, and then breaks out above the midpoint between the two bottoms.
✅ Key Traits of a Double Bottom:
Two Distinct Lows
The second low should occur at or slightly below the first (a shakeout is common).
The time between lows should be at least 3–4 weeks, ideally longer.
Tightness and Volume Clues
The second bottom often occurs on lighter volume, showing selling is drying up.
Watch for increased volume as the stock rises from the second low and especially on the breakout.
Buy Point (Pivot)
The buy signal is triggered when the stock breaks above the peak between the two lows—known as the pivot point.
Volume should be 40%–50% above average on the breakout.
📖 William O’Neil’s Perspective:
“The double bottom is one of the most successful base patterns when formed properly, with the second low shaking out the weak hands and the breakout occurring in sync with a strong market.”
📊 Real Example:
Let’s say a stock drops to $50, rallies to $58, then drops again to $51.
If it then surges past $58 with strong volume, that’s your buy signal—with a pivot at $58.
📊Chart Example:
Use these market tools to scan for and review stocks:
✅ MarketSmith (MarketSurge) – Premium Market Analysis and Scanner Tool
✅ Charts.com – Budget-Friendly Charting Option
✅ TradingView – Free & Subscription Stock and Crypto Charts
✅ DeepVue – MarketSurge Inspired Analysis and Scanner
👀 Seeing real-world stock patterns helps train your eye for long-term trends.
Our Sister Newsletter. Because everyone’s a Beginner in something.
News
MARKET GAINS FADE AFTER CPI RALLY, TECH HOLDS STEADY
Markets opened flat Thursday after a big rally the day before, sparked by cooler inflation data. The Nasdaq and S&P 500 hovered near break-even, while the Dow edged slightly lower. Investors took a breather following Wednesday’s jump, with traders sorting through new economic data and comments from Federal Reserve officials.
Tech names like Nvidia, Amazon, and Microsoft held onto most of their recent gains. Meanwhile, small caps and industrials saw mild profit-taking. Attention is now on whether the recent shift in rate expectations will keep fueling momentum through the rest of the week.
Stock Spotlight
Booking Holdings ($BKNG ( ▲ 2.49% ) )
Travel Platform Approaches Buy Point Amid Global Demand
Booking Holdings (BKNG), the parent company of Booking.com, Priceline, and OpenTable, is trading near a 5,250 buy point, closing at $5,216.55. The stock has climbed 40% over the past year and 5.5% year-to-date, buoyed by a 7% rise following stronger-than-expected Q1 results.
Key Facts:
Current Price: Approximately $5,216.55
Q1 EPS: $24.81, a 22% year-over-year increase
Q1 Revenue: $4.8 billion, up 8% year-over-year
Revenue Outlook: Projected growth of 10–12%
IBD Composite Rating: 94
Relative Strength Rating: 91
Booking's strong performance is attributed to consistent global demand, particularly in Europe, which remains a key revenue driver. Analysts from Evercore ISI highlight its scale, growth, margins, experienced management, and value. The stock's resilience places it on IBD’s SwingTrader list.
What Traders Can Pick Up:
Global Exposure: Companies with diversified international operations may better withstand regional economic fluctuations.
Technical Patterns: Monitoring stocks approaching buy points can offer potential entry opportunities.
Analyst Insights: Positive analyst evaluations can reflect underlying business strengths.
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.