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)
Most new traders focus only on individual stocks, ignoring the overall market trend—a huge mistake that can cost you money.
📌 Fact: 3 out of 4 stocks move in the same direction as the overall market—whether up or down.
This means you must trade in sync with the trend instead of fighting it.
📖 William O’Neil’s Insight:
“Even the best stocks will struggle in a bear market. Always trade in sync with the overall market direction.”
🔹 Think of the Market as an Ocean:
In a bull market, stocks rise like boats lifted by the tide.
In a bear market, even strong stocks sink as selling pressure increases.
In a market correction, uncertainty makes stocks volatile and unpredictable.
📈 How to Identify Market Trends
1️⃣ Bull Market – The Best Time to Trade
✅ Major indexes (S&P 500, NASDAQ) are making higher highs.
✅ Institutional buying is strong (accumulation days).
✅ Follow-Through Days confirm new uptrends.
✅ Growth stocks are breaking out and making new highs.
📖 Example: In 2020, the market crashed due to COVID-19, but in April 2020, a follow-through day confirmed a new bull market.
🔥 Stocks like Tesla (TSLA) and Nvidia (NVDA) surged over 500% in the next year!
2️⃣ Bear Market – Time to Protect Your Capital
🚨 Warning signs of a bear market:
❌ 5+ Distribution Days in a 4-Week Period (high-volume selling).
❌ Major indexes breaking below the 50-day or 200-day moving average.
❌ Fewer stocks making new highs, more making new lows.
📖 Mark Minervini’s Take:
“Most traders go broke by refusing to recognize when the market has changed. Your job isn’t to fight the trend—it’s to follow it.”
📖 Example:
In 2008, the Financial Crisis showed over 10 distribution days in a row before stocks collapsed.
Traders who recognized the warning signs and went to cash avoided massive losses.
3️⃣ Market Corrections – A Pause Before the Next Big Move
🔹 What is a market correction?
A short-term decline of 10-20% in a bull market.
Often shakes out weak investors before the market resumes upward.
Danger: If a correction turns into a bear market, losses can be severe.
📖 Nicolas Darvas’ Take:
“During corrections, strong stocks recover quickly, while weak stocks collapse completely. Pay attention to price action.”
📊 How to Spot Market Tops & Bottoms
🔺 Signs of a Market Top (Time to Reduce Exposure)
🚨 Multiple Distribution Days – When big funds start selling, it’s a warning.
🚨 Excessive Euphoria – When everyone is bullish, the market is often near a top.
🚨 Leaders Are Stalling – If strong stocks fail to make new highs, momentum is fading.
📖 Example: In 2000 (Dot-Com Bubble), tech stocks soared before collapsing by 80%.
🔥 The warning? Multiple distribution days + extreme investor optimism.
🔻 Signs of a Market Bottom (Time to Look for Opportunities)
✅ A Follow-Through Day (FTD) – A strong market rally (2%+ gain on high volume) signals a new uptrend.
✅ Stocks Stop Making New Lows – Leading stocks begin stabilizing.
✅ High-Quality Growth Stocks Break Out – If new leaders emerge, the bear market is ending.
📖 Example: In March 2009, a Follow-Through Day confirmed the end of the Great Recession bear market.
🔥 Stocks like Netflix (NFLX) and Amazon (AMZN) soared afterward!
🎯 Action Step
✅ Check today’s market trend on IBD’s Market Pulse or TradingView.
✅ Look at the NASDAQ or S&P 500 charts—are we in a bull market, bear market, or correction?
✅ Track the number of distribution days over the past 4 weeks.
👉 Write down your observations in a trading journal. It can be a paper journal, a Google Spreadsheet, or digital journal software like the ones below:
TraderSync for casual traders to sync accounts
Stonk Journal for manual entry. (Free and Ad free software)
Trades Viz for power users
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
THE SWITCH IS BACK AND BETTER: NINTENDO UNVEILS THE SWITCH 2! 🚀
Nintendo just dropped a GAME-CHANGER. The Switch 2 is here, powered by a custom Nvidia processor, and it’s set to launch on June 5. This new console promises to take gaming to the next level, and I can’t wait to see how it shakes up the market. Whether you're a casual player or a hardcore gamer, this is something you’ll want to keep your eyes on. Summer gaming just got a whole lot better.
👉 Ready to geek out? Click here for the full story.
7 DIVIDEND STOCKS THAT CAN WEATHER ANY STORM 🤑
Investors are all about safe, steady dividends right now—and for good reason. In a market rattled by uncertainty (thanks, tariffs), these stocks are delivering solid results. The big winners? CVS Health jumped an insane 51% this year, while Philip Morris, Gilead Sciences, and Chevron are also crushing it. Want some peace of mind AND steady returns? These dividend stocks might be your new best friends.
👉 Find out which stocks made the list and why they’re soaring. Dive right in here.
GOLD, ENERGY & A HOT CHINESE IPO: YOUR NEW STOCK WATCHLIST 📈
The market might be shaky, but there’s BIG potential in certain sectors right now. Gold is glittering, energy stocks are surging, and a biotech IPO from China’s Ascentage Pharma is turning heads. Companies like Ryan Specialty, TechnipFMC, and Agnico-Eagle Mines are climbing the charts too. If you’re looking for opportunities in this wild market, these are the names to know.
👉 Start building your watchlist today. Check out the details here.
Stock Spotlight
Featured Stock: CVS Health (CVS)
CVS Health isn’t just your go-to pharmacy—it’s a dividend superstar in 2025. With a year-to-date gain of 51.4% and a dividend yield of 3.9%, CVS is proving that even in volatile markets, strong dividend stocks can deliver solid returns. The stock boasts an RS Rating of 93, signaling superior price performance compared to other stocks.
What’s driving CVS's success? Analysts attribute the growth to its improving earnings, with an expected EPS increase of 9% in 2025 and 16% in 2026. From a technical perspective, CVS is forming a giant cup pattern with a buy point of 83.25, a classic setup traders look for in breakout stocks.
For dividend investors seeking both income and growth, CVS combines steady returns with an upward trajectory, making it an attractive option in a shaky market.
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.