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)
Did you know that 3 out of 4 stocks follow the overall market trend? That’s why even the best stocks will struggle if the market is weak.
“The biggest mistake new investors make is ignoring the market trend. A great stock in a bad market is a bad trade.”
“A speculator who ignores the market conditions is like a sailor ignoring the storm.”
If you don’t trade in sync with the market, you’re fighting an uphill battle.
📊 How to Identify Market Trends
🔹 The Three Market Phases:
✅ Bull Market (Uptrend) – Stocks rise, major indexes are making higher highs.
✅ Bear Market (Downtrend) – Stocks fall, distribution days increase.
✅ Market Correction (Sideways/Choppy) – Unclear direction, stocks become volatile.
📖 O’Neil’s Market Timing Rules:
🚀 Follow-Through Days – A strong up day on high volume signals a new bull market.
🚨 5+ Distribution Days in 4 Weeks – A major red flag that a bear market is forming.
📖 Example:
In March 2009, a Follow-Through Day signaled the start of a bull market → Stocks like Amazon soared 3,000%+ over the next decade.
“The market will tell you what to do. If you listen to the market instead of your opinions, you’ll be on the right side of the trend.”
📉 How to Spot Market Tops & Bottoms
🚨 Signs of a Market Top (Time to Sell & Reduce Risk)
❌ Multiple Distribution Days in a Short Period – Institutions are selling.
❌ Excessive Hype & Euphoria – If everyone is bullish, the market may be near a top.
❌ Leaders Start Failing – If the best stocks stall and sell off, be cautious.
📖 Example:
The Dot-Com Bubble (1999-2000) – Stocks were in extreme euphoria, followed by a crash that wiped out 80% of tech stocks.
🔻 Signs of a Market Bottom (Time to Look for Opportunities)
✅ A Follow-Through Day (FTD) Appears – A strong rally on high volume signals a new uptrend.
✅ Fewer Stocks Making New Lows – Selling pressure is fading.
✅ New Leaders Emerge – Strong stocks start breaking out again.
📖 Example:
March 2020 (COVID Crash Recovery) – A Follow-Through Day confirmed the market bottom, and stocks like Tesla & Nvidia surged 1,000%+ in the next 18 months.
“The market does not beat them. They beat themselves, because they fight the market instead of following it.”
🔍 How to Track Market Direction
📌 Follow These 3 Steps to Always Be on the Right Side of the Market:
✅ Step 1: Count Distribution Days
If you see 5 or more in 4 weeks, be cautious.
✅ Step 2: Look for a Follow-Through Day (FTD)
A 2%+ rally on high volume confirms a new uptrend.
✅ Step 3: Track Major Indexes (S&P 500, NASDAQ)
Are they making new highs or breaking below key moving averages?
📖 Example:
NASDAQ’s Follow-Through Day in April 2020 → Stocks exploded higher in the months that followed.
🎯 Action Step
✅ Go to TradingView or IBD’s Market Pulse.
✅ Determine if we are in a bull market, bear market, or correction.
✅ Write down your observations in your trading journal.
⏭️ Coming Up Next:
Tomorrow, we’ll dive into how to read stock charts like a pro.
🚀 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
NVIDIA'S RISE: MORE THAN MEETS THE EYE
NVIDIA is on a ROLL! 🚀 While its stock isn't QUITE above key moving averages, there's a lot to be excited about. With the U.S.-China trade war heating up, NVIDIA, Tesla, and Apple are defying odds, showing STRONG performance amidst market chaos. But don't be fooled—there's more beneath the surface!
Why does this matter? Because market volatility is at an all-time HIGH. And understanding how these tech giants maneuver can give YOU the edge you need in today's market. 📈 Dive into why these stocks are the ones to watch—are they leading the charge or just riding the wave?
FED ALERT: TREASURY YIELDS & RECESSION WHISPERS
Hold onto your HATS, folks! The Federal Reserve is on high alert as Treasury yields spike, and whispers of a recession grow LOUDER. With President Trump’s tariffs shaking up the market, pharmaceutical stocks are taking a hit. 💊 But what does this mean for YOU?
It’s SIMPLE: The Fed might have to STEP IN. And when they do, it could change the game entirely. Understanding these moves can be the difference between making and losing money. Let's break it down and see how you can STAY ahead of the curve!
TECH TITANS & TARIFFS: THE GAME-CHANGER
In the MIDST of tariff turmoil, tech is taking CENTER stage! Google’s AI advancements and IBM’s AI-focused updates are making waves. Meanwhile, semiconductor companies face hurdles from tariffs and quantum computing. This isn’t just another tech update—it's a game-changer!
EVER wondered how these tech giants will impact your investments? With the IBD Stock Screener, you can spot the STRONG players. Learn how strategic moves and new tech can affect your portfolio. It's time to EMBRACE the new era of tech investing!
Stock Spotlight
Spotlight Stock: Google (GOOG)
In the realm of technology and innovation, Google's parent company, Alphabet Inc. (NASDAQ: GOOG), remains a formidable force. Known for its relentless pursuit of advancements in artificial intelligence, cloud computing, and data analytics, Google continues to shape the future of digital transformation.
Key Highlights:
Cloud Computing: Google's cloud division is a cornerstone of its growth strategy, positioning itself to compete robustly against industry leaders like Amazon and Microsoft. With strategic partnerships and expansions, Google Cloud is set to capture a larger market share.
AI Innovations: Google is at the forefront of artificial intelligence, integrating AI into products like search and advertising, which enhances user experience and operational efficiency.
Financial Growth: With a market cap surpassing $1 trillion, Google's financial health is robust, supported by diverse revenue streams, including advertising, cloud services, and hardware products.
Global Reach: Google’s services are used by billions worldwide, providing a steady and expansive user base that supports advertising revenues and brand loyalty.
Why It Matters:
Investing in Google (GOOG) offers exposure to a tech giant with a proven track record of innovation and financial success. Its continuous reinvestment in cutting-edge technology ensures its position as a market leader, enhancing potential returns for investors looking for growth in the tech sector.
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.