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:
✅ Which moving averages matter most for growth traders—and why.
✅ How to use moving averages to time entries, manage risk, and hold winners.
✅ How O’Neil and other top traders used the 10-week line to ride monster stocks.
Want to know how great traders stay in winning stocks while others sell too early?
Moving averages are the secret. They act as a trend-following compass—helping you buy at the right time, manage risk, and hold strong stocks longer than you thought possible.
📖 William O’Neil’s Insight:
“The 10-week moving average is the single best tool I’ve found for riding powerful stocks to big gains—without selling too early.”
Top traders like O’Neil, Minervini, and Livermore didn’t just look at price—they used moving averages as confirmation tools. Let’s break down which ones matter most, and exactly how to use them.
📊 The 4 Key Moving Averages Every Trader Should Know
✅ 1. The 21-Day EMA (Exponential Moving Average)
Tracks short-term trends and institutional support.
Growth traders use this line to gauge when a breakout is holding vs. rolling over.
Loss of the 21-day on volume? Take note.
✅ 2. The 50-Day SMA (Simple Moving Average)
Used by big funds, algos, and swing traders to track medium-term health.
Often acts as a bounce zone in strong uptrends.
Breaks below the 50-day on volume = warning sign.
✅ 3. The 10-Week SMA (Same as 50-Day on weekly charts)
This is O’Neil’s favorite line for managing intermediate-term winners.
If a stock breaks out, consolidates, and rides the 10-week line without heavy volume selling, that’s a winner.
📖 Example:
TSLA in 2020 pulled back to its 10-week line six times and bounced before nearly quadrupling.
O’Neil held AMGN in the 1980s for months using the 10-week as his guide.
✅ 4. The 200-Day SMA
A long-term institutional benchmark.
Avoid buying any stock below its 200-day line—it’s a sign of weakness, not strength.
Stocks making new highs above the 200-day are where the leaders live.
📉 Mistakes Traders Make with Moving Averages
🚫 Using the wrong timeframe (e.g., 5-day EMA for a swing trade = too noisy)
🚫 Ignoring volume on the break of a moving average
🚫 Thinking a bounce at the line = guaranteed rebound
🚫 Using the line as an excuse to “hope” a losing position recovers
📖 Mark Minervini’s Take:
“Moving averages don’t predict—they react. They confirm that a trend is strong and give you structure for managing the trade.”
📌 Trader’s Checklist: Using Moving Averages Effectively
✅ Is the stock above the 21-day and 50-day averages? (short-term health)
✅ Is the 10-week line rising and acting as support?
✅ Did the stock bounce off a moving average with volume support?
✅ Is the stock in a confirmed uptrend or part of a base near highs?
✅ Has the stock respected its moving average during prior runs?
✅ Are you using the right timeframe for your trading style?
🎯 Action Step: Analyze 3 Winning Stocks Using Moving Averages
✅ Choose 3 top-performing growth stocks from your watchlist.
✅ On your preferred charting platform, add these moving averages:
21-day EMA
50-day SMA
200-day SMA
10-week SMA (weekly chart)
✅ Ask:
Where did the stock bounce during prior runs?
Is it currently holding above all major moving averages?
Would you have stayed in longer using the 10-week rule?
⏭️ Coming Up Next:
📌 Wednesday’s Lesson: Support & Resistance – The Invisible Hand of the Market
Learn how to read the key price levels that smart money respects—and how to use them for precise entries and exits.
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 SLAMMED AS TECH CRACKS AND POWELL SHAKES WALL STREET
Powell dropped a bomb. Nvidia got crushed. The Dow took a beating.And out of nowhere? Bill Ackman gave a boost to a surprising stock.
Yesterday was a wild ride. The Dow cratered 900 points 📉—its worst drop in months. Tech took the biggest hit, with the Nasdaq falling over 4%. The culprit? Fed Chair Jerome Powell warned that Trump’s tariffs could slow growth and heat up inflation. Nvidia tanked 7% after new export hurdles to China. That dragged down chip stocks across the board, including AMD, Broadcom, and Marvell. Meanwhile, Hertz popped 14% after Ackman’s Pershing Square jumped in with a big buy.
But even with gold and energy stocks showing some muscle, the pain was felt just about everywhere else. Tesla lost steam. Netflix slipped. ASML cut guidance. Small caps? Down. The IBD 50 ETF? Down. Even some breakout plays like Icici Bank and Relx couldn’t hold their gains. Only a few bright spots—like Travelers—managed to fight the tide.
Stock Spotlight
📈 Stock Feature of the Week: Adtalem Global Education (ATGE)
Looking for a steady performer in a crucial sector? Meet Adtalem Global Education Inc. (NYSE: ATGE) — a for-profit education powerhouse specializing in healthcare and medical training. Headquartered in Chicago, Adtalem owns and operates well-known institutions like Chamberlain University, Walden University, and the Ross University schools of medicine and veterinary medicine.
🩺 Why It Matters
In a world where healthcare professionals are always in demand, Adtalem is perfectly positioned. Its focus on nursing, medical, and online education gives it a resilient niche, even in volatile markets.
Stock Price (as of April 2025): $104.66–$106.36
Market Cap: ~$3.96 billion
Revenue (FY2023): $1.451 billion
Net Income: $93.4 million
P/E Ratio: ~14.95 (attractive vs. education peers)
After shedding its non-healthcare assets like Becker Professional Education, Adtalem sharpened its focus on sustainable and profitable growth in the healthcare education space. That move has helped solidify its position and improve long-term prospects.
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.