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:
✅ How to identify true support and resistance levels that institutions respect.
✅ How these levels help you enter trades with precision and exit without emotion.
✅ What smart traders look for before placing a trade near a key level.
Most traders think of support and resistance as just lines on a chart. But the best traders know they’re more than that—they’re a reflection of real money behavior.
Support and resistance reveal where buyers are stepping in and sellers are locking in profits. If you can spot these zones accurately, you’ll stop chasing trades and start positioning yourself before the big move happens.
📖 William O’Neil’s Insight:
“Support and resistance levels mark key points of psychological importance. They are footprints of the big players.”
📈 How Support & Resistance Actually Work
✅ Support = Price Level Where Buyers Step In
This is the area where a stock stops falling and demand begins to absorb selling pressure.
Usually found near prior consolidation zones, moving averages (like the 50-day), or the lows of a base.
Great place for second-chance entries in strong uptrends.
✅ Resistance = Price Level Where Sellers Show Up
This is where a stock has previously stalled or reversed.
Often found at the pivot point of a base, near prior highs, or overhead supply where trapped investors want to break even.
Breakouts above resistance are high-probability entry zones—if volume confirms.
📖 Example:
NVIDIA (NVDA) broke through resistance at $200 in 2023 with volume surging—then ran nearly 40% in weeks.
After pulling back, it found support near the 21-day EMA and bounced to new highs.
📖 Mark Minervini’s Take:
“Support and resistance are where amateurs panic and professionals prepare.”
📉 Mistakes Traders Make Around Key Levels
❌ Buying too close to resistance without confirmation
❌ Selling into support out of fear (just before the bounce)
❌ Ignoring volume signals when a level is tested or broken
❌ Drawing lines based on hope—not historical price action
📖 Jesse Livermore’s Warning:
“The market is never wrong. Opinions often are. Let price prove your idea.”
📌 Trader’s Checklist: Reading Support & Resistance with Confidence
✅ Is the support level based on recent lows, moving averages, or a prior base?
✅ Is the resistance level near a pivot point, recent highs, or overhead supply?
✅ Is volume confirming strength or weakness at these levels?
✅ Is the general market healthy, supporting breakouts or bounces?
✅ Did the stock previously respect these levels during other advances or corrections?
🎯 Action Step: Mark the Zones Before You Trade
✅ Choose 3 stocks from your watchlist that are consolidating or forming bases.
✅ On your charting platform, mark:
Nearest support (prior low, 50-day, base low)
Nearest resistance (pivot point, prior high, volume shelf)
✅ Ask:
Am I buying near support with low risk?
Is the stock coiling near resistance with volume drying up (a potential breakout)?
What happened the last time price hit this level?
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
DOW TANKS 600 POINTS ⚠️ BUT AN INDIAN BANK EXPLODES HIGHER
It was a rough one today.The Dow Jones got smacked — down over 600 points in early trading — all thanks to a brutal sell-off in UnitedHealth. Why? A rare earnings miss triggered a 20% freefall in the stock. That’s the worst day for UNH in years, and it yanked the whole index down with it. 📉
But here’s the twist...While Wall Street panicked, emerging market stars shined. ICICI Bank (IBN) broke out of a solid cup-with-handle base and surged 3% — on 130% higher volume. HDFC Bank (HDB) also blasted past its buy point. Meanwhile, small caps staged a mini comeback, and chip stocks found some footing thanks to strong AI-driven profits from Taiwan Semiconductor.
👉 Want the full scoop — and the charts to match?Catch today's market action here
Stock Spotlight
🔍 Feature Stock of the Week: Primo Brands (PRMB)
Busy week? Here’s your 2-minute read to stay ahead.
Meet Primo Brands (PRMB) — a newly merged water powerhouse making waves in the consumer staples sector. Born from the 2024 reverse merger between Primo Water and BlueTriton Brands, PRMB now bottles household names like Poland Spring, Saratoga, Mountain Valley, and Sparkletts.
Here’s why PRMB is making headlines (and potentially your portfolio):
📈 Revenue Growth: Q3 2024 revenue jumped 8.8% YoY to $511M, with 7.4% organic growth.
💰 Strong EBITDA: Adjusted EBITDA hit $125M, signaling solid cost control post-merger.
📊 Stock Momentum: Up ~94% YoY as of April 2025, with analysts eyeing a +22.85% upside to $41.50 per share.
🤝 Strategic Moves: Rebranding efforts like Saratoga® Signature Blue and expansion into DTC and commercial channels show forward-thinking execution.
While GAAP profitability still lags (that -1,029x P/E is no typo), margin improvements and restructured operations are key focus areas for 2025.
Why it matters: PRMB is a strong example of how post-merger synergies and brand strength can unlock long-term value. It’s a great case study for mid-cap turnaround plays, especially in defensive sectors like beverages where consumer loyalty runs deep.
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.