Tuesday Feb 11 How Big Investors Drive Stock Prices

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.

Every successful stock needs big money behind it to fuel its rise. Retail traders alone cannot push a stock up—it’s hedge funds, mutual funds, and pension funds that create massive demand. Figure out when they are moving into or out of a stock and you can ride the wave up or avoid the crash down.

If you want to find the next big winner, you need to identify stocks being accumulated by institutions.

✅ Rising Institutional Ownership – More funds are buying the stock each quarter.
✅ Accumulation Days – Stock rises on above-average volume.
✅ Stock Holds Up During Market Weakness – When the market corrects, leaders stay strong.

📖 O’Neil’s Example of Institutional Accumulation:

❌ Distribution Days – A stock drops on high volume (bad sign).
❌ Declining Fund Ownership – If institutions sell over multiple quarters, stock momentum weakens.
❌ Repeated Failed Breakouts – If a stock tries to break out and fails multiple times, smart money might be exiting.

📖 Example:

📌 Follow These 3 Steps to Find Stocks with Strong Institutional Support:

✅ Step 1: Check Fund Ownership Trends

✅ Step 2: Watch for High-Volume Accumulation Days

✅ Step 3: Track Holdings of Top-Performing Funds

📖 Example:

✅ Go to Finviz or IBD’s Fund Ownership Tool.
✅ Look up a stock and check if fund ownership is rising.
✅ Find one stock that has strong institutional backing and track its performance.

👉 Write your observations in your trading journal.

Tomorrow, we’ll discuss market direction—why knowing when to buy is just as important as knowing what to buy.

🚀 Stay disciplined & keep learning!

📌 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.

Boy, what a day in the stock market! The Dow Jones catapulted 800 points higher, dragging the S&P 500 and Nasdaq along for the ride. Why, you ask? Well, it seems President Trump dropped some hints about potentially smoothing things over with South Korea and China. His tweets gave investors a glimmer of hope that the sticky tariff situation might actually ease up, and the market reacted like a kid in a candy store. 📈

Even Nvidia and Apple got in on the action, seeing their share prices climb as well. Meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF rebounded after earlier jitters from tariff tensions. Sure, some folks are still biting their nails about the impacts on the economy, but for now, the market's taking a breather. Want to know more about what this means for your investments?

Dive into the full market analysis here!

In the midst of a volatile stock market, UnitedHealth Group (UNH) stands out as a promising stock worthy of attention. As part of the Dow Jones Industrial Average, this health insurance giant is currently finding robust support at its 50-day moving average. The stock is forming a base that resembles a double bottom, with a buy point at 553.91, according to MarketSurge chart analysis. This pattern is often seen as a strong foundation for future gains.

Why Watch UnitedHealth?

Stock Backstory: Earlier in the year, UnitedHealth faced scrutiny as the U.S. Department of Justice launched a civil fraud probe into its Medicare Advantage billing practices. This investigation focused on whether diagnoses were routinely made to trigger extra payments. Despite this challenge, UnitedHealth's performance in the market has shown resilience.

With the current stock market in a correction phase, investors are advised to tread cautiously. While now may not be the best time to make new purchases, keeping an eye on strong performers like UnitedHealth can prepare you to act swiftly once the market conditions improve.

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

Thank you for reading. We’re all Beginners in something!

-Beginners in Stock Trading Team