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)
A single strong earnings quarter isn’t enough—to find the true stock market superstars, you need to look at consistent annual earnings growth.
“Stocks with a history of consistent earnings growth have the best chance of continuing to rise.”
📊 Why Annual Earnings Growth Matters
Short-term earnings spikes can be misleading, but multi-year growth shows a company has real strength.
✅ The best stocks show 25%+ EPS growth per year for at least 3 years.
✅ Even better: Companies with accelerating earnings growth over time.
💡 Real-World Examples of Annual Earnings Growth Before Big Runs:
✅ Netflix (2010-2013): EPS up 48% annually → Stock soared 700%.
✅ Amazon (2015-2018): EPS up 83% annually → Stock skyrocketed 1,500%.
✅ Tesla (2019-2022): EPS up 240% annually → Stock exploded 1,900%.
“Earnings growth is the fuel that drives stock price appreciation. If the fundamentals aren’t there, neither is the opportunity.”
🔍 How to Find Stocks With Strong Annual Earnings Growth
📌 Follow These 3 Steps to Identify Market Leaders:
✅ Step 1: Check the Company’s 3-5 Year EPS Trend
Look for consistent 25%+ growth over multiple years.
✅ Step 2: Compare Profit Margins & Return on Equity (ROE)
ROE above 15% signals a highly efficient business.
✅ Step 3: Check Industry Trends
High-growth stocks often belong to high-growth industries (Tech, AI, Biotech, etc.).
“The best stocks do not just have one lucky year of earnings—they deliver strong profits year after year.”
📉 When to Avoid a Stock
🚨 Warning Signs of Weak Growth Stocks:
❌ Erratic earnings – Some years up, some years down.
❌ Declining margins – If profits are shrinking, demand may be fading.
❌ Weak ROE – Low efficiency means less long-term potential.
📖 Example:
Peloton (PTON) in 2021-2022 went from huge earnings growth to losses → Stock collapsed 90% in a year.
🎯 Action Step
✅ Go to Yahoo Finance or Finviz.
✅ Search for a stock you’re interested in.
✅ Check its last 3-5 years of annual EPS growth.
✅ Does it have consistent 25%+ annual earnings growth?
👉 Write your findings in your trading journal.
⏭️ Coming Up Next:
Tomorrow, we’ll cover how new products, management changes, and stocks hitting all-time highs can signal major opportunities.
🚀 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
TESLA STUMBLES: IS THE EV KING LOSING ITS CROWN?
Tesla’s stock took a hit this week, and whispers are growing louder: Is competition finally catching up? With new players entering the electric vehicle market, Tesla’s once-dominant market share is under threat. Plus, supply chain woes and pricing pressures aren’t helping. Should investors stay calm—or start reevaluating their love for Elon’s empire?
FED WATCH: WHAT’S NEXT FOR INTEREST RATES?
The Federal Reserve’s next move is the hot topic right now. Inflation’s cooling, but not fast enough—so what does that mean for interest rates? Investors are watching closely, as every decision could send shockwaves through the market. This is one you can’t afford to ignore.
FINANCIAL STOCKS FLEX MUSCLE AS INTEREST RATES HOLD STEADY
Bank stocks surged this week as the Federal Reserve signaled it’s hitting “pause” on rate hikes—for now. From JPMorgan Chase to Bank of America, financials are having a moment. What’s fueling the rally? Higher interest income and a stronger-than-expected consumer. But watch out: the Fed’s next move could shift the narrative fast.
👉 Find out what this means for your portfolio! Read more here: Stock Market News
Stock Spotlight
This Stock Rides Market Waves and Rewards Investors
When the stock market gets choppy, MarketAxess Holdings (MKTX) thrives. This New York-based fintech powerhouse specializes in electronic trading platforms for fixed-income securities like corporate bonds and emerging markets debt—a vital service in today's increasingly digital financial world.
Why MarketAxess Stands Out:
Volatility-Friendly: Higher market volatility often drives institutional investors toward MarketAxess’ platform, boosting trading volumes and revenues.
Strong Performance: The stock boasts a stellar IBD Composite Rating of 95 out of 99, highlighting its robust earnings and solid price action.
Earnings Growth: Over the last three quarters, MarketAxess has averaged 42% earnings growth, driven by organic platform adoption and deeper market penetration.
Dividends That Deliver: With a 1.2% dividend yield, it rewards investors while offering long-term growth potential.
Analyst Confidence: Analysts rate it a "buy," projecting a price target of $315—a potential upside from its current levels.
Technical Setup:
MarketAxess is forming a cup-with-handle base and is nearing a buy point of $307.50, according to MarketSurge analysis. The stock is currently finding support at its 50-day moving average, a key inflection point to keep an eye on. Its relative strength line has just hit a new high, signaling outperformance against the S&P 500.
For 2025, MarketAxess is already up 6%, proving its resilience amid market volatility. If you're looking for a stock that's positioned to ride the waves instead of sinking in the storm, MKTX might be your pick.
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15 referrals How to Make Money in Stocks Getting Started
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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.