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:
✅ What a stock scan is and why it’s a powerful tool for traders
✅ How to build a beginner-friendly scan that surfaces high-potential trades
✅ The exact scan filters used by O’Neil, Minervini, and other growth traders
✅ A simple step-by-step process to go from scan → watchlist → trade
📝 Opening Thought:
The market has over 8,000 stocks.
But every week, only a handful are worth watching—and even fewer are worth trading.
So how do pros zero in on the best setups, fast?
They use stock scans—a focused search tool that helps them find stocks that meet very specific criteria.
And today, you’ll learn how to build your own—even if you’re brand new.
📖 William O’Neil said:
“Great traders don’t find stocks by luck. They screen for leadership, strength, and structure—on purpose.”
🧠 What Is a Stock Scan?
A stock scan is like a custom filter.
It takes a massive universe of stocks and shows you only the ones that meet your criteria.
You can scan for:
Fast earnings growth
Stocks near 52-week highs
Tight price action
High relative strength
Specific base patterns (like cup-with-handle or double bottom)
Instead of watching random tickers, you now look at your best matches only.
⚙️ The 3-Part Scan System: A Beginner’s Framework
To make scanning simple, we’ll use the C.A.S. model:
✅ C = Condition
What kind of stocks are you looking for?
Are they in an uptrend?
Have they pulled back to support?
Are they near a breakout?
📌 Beginner tip: Start with “Price within 10% of 52-week high.”
This ensures you're focusing on strength, not weakness.
✅ A = Action Filter (Traits)
What qualities do they need to have?
Strong earnings and sales growth
High Relative Strength
Top industry groups
📌 Beginner filters to try:
EPS % change: >25% (quarter-over-quarter)
RS Rating: 85 or higher
Group Rank: Top 40 groups
✅ S = Setup Filters (Structure)
Are they in a pattern or technical setup?
Consolidating? Forming a base?
Bouncing off a key moving average?
📌 Beginner filters:
Tight price range over last 10 days
Price above 50-day moving average
Volume drying up (optional but powerful)
📊 Real Example Scan (Beginner-Friendly)
Here’s a beginner scan that can be run on MarketSmith, DeepVue, or TradingView Pro:
- Price within 10% of 52-week high - EPS growth this quarter: ≥ 25% - RS Rating: ≥ 85 - Price above 50-day moving average - Volume last 10 days below 50-day average
This scan will return only strong stocks with:
✅ Growth
✅ Leadership
✅ Structure
✅ A potential breakout forming
💻 Where to Run These Scans
Some great beginner-friendly tools:
MarketSmith – has a “Growth 250” scan built in
DeepVue – strong CAN SLIM-style scanning
TradingView Pro – great flexibility with filters and alerts
Finviz – free, good for fundamentals
🔁 What To Do After Running a Scan
Review charts from the scan
Look for:
Base patterns (cup, flat base, double bottom)
Tight action near highs
Rising RS line
Add 5–10 top names to your watchlist
Set alerts at logical breakout points
Prepare your trade plan—don’t chase, wait for confirmation
📖 Minervini said:
“I want the stock to come to me. Scans help me find strength, but discipline tells me when to act.”
🧪 Real Stocks That Showed Up in Historical Scans
✅ NVIDIA (NVDA) – January 2023
EPS up 200%
RS 95
Price 5% below 52-week high
In a flat base
Broke out and ran 40% in 8 weeks
✅ Shopify (SHOP) – October 2019
Price pulled back to 50-day
Tight range with low volume
RS line turning up
Scanned perfectly → breakout followed
✅ Netflix (NFLX) – May 2018
RS 98, EPS growth >100%
Consolidating at highs
Scanned near the pivot and exploded to all-time highs
📌 Trader’s Checklist: Beginner Scan Blueprint
✅ Am I screening for stocks near their highs, not lows?
✅ Is earnings growth or RS strong?
✅ Are the stocks forming clean setups, not chasing highs?
✅ Is the number of scan results manageable (under 30)?
✅ Have I created a watchlist from my scan—not a buy list?
🎯 Action Step: Build Your First Scan Today
✅ Choose one platform (Finviz, TradingView, DeepVue, etc.)
✅ Use the 5 beginner filters:
Near 52-week high
EPS ≥ 25%
RS ≥ 85
Price above 50-day
Tight 10-day range
✅ Run the scan → Pick 3 promising setups
✅ Save them to a watchlist, and set alerts near breakout levels
🧠 Final Thought:
Stock scans are your trader radar system.
They help you stop guessing, and start acting on clear data.
And as your experience grows, your scan evolves with you.
Start simple. Get consistent. Build confidence.
📖 O’Neil said:
“Success doesn’t come from watching everything—it comes from watching the right things.”
Train Your Eyes On This Pattern(of the month)
“Double Bottom”
📉 What Is a Double Bottom Pattern?
A double bottom is a bullish reversal pattern that signals a potential end to a downtrend and the beginning of a new uptrend.
It’s shaped like a “W” on a chart and forms when a stock tests a low price level twice, finds support each time, and then breaks out above the midpoint between the two bottoms.
✅ Key Traits of a Double Bottom:
Two Distinct Lows
The second low should occur at or slightly below the first (a shakeout is common).
The time between lows should be at least 3–4 weeks, ideally longer.
Tightness and Volume Clues
The second bottom often occurs on lighter volume, showing selling is drying up.
Watch for increased volume as the stock rises from the second low and especially on the breakout.
Buy Point (Pivot)
The buy signal is triggered when the stock breaks above the peak between the two lows—known as the pivot point.
Volume should be 40%–50% above average on the breakout.
📖 William O’Neil’s Perspective:
“The double bottom is one of the most successful base patterns when formed properly, with the second low shaking out the weak hands and the breakout occurring in sync with a strong market.”
📊 Real Example:
Let’s say a stock drops to $50, rallies to $58, then drops again to $51.
If it then surges past $58 with strong volume, that’s your buy signal—with a pivot at $58.
📊Chart Example:
Use these market tools to scan for and review stocks:
✅ MarketSmith (MarketSurge) – Premium Market Analysis and Scanner Tool
✅ Charts.com – Budget-Friendly Charting Option
✅ TradingView – Free & Subscription Stock and Crypto Charts
✅ DeepVue – MarketSurge Inspired Analysis and Scanner
👀 Seeing real-world stock patterns helps train your eye for long-term trends.
Our Sister Newsletter. Because everyone’s a Beginner in something.
News
FUTURES RALLIED ALL WEEK… THEN STUMBLED ON MOODY’S SHAKEUP
The markets ripped higher last week, with the Dow jumping 3.4%, the S&P 500 up 5.3% and the Nasdaq surging 7.2%—all fueled by thawing U.S.–China trade tensions and an AI spending frenzy. Broadcom, Meta Platforms, Construction Partners and Sprouts Farmers Market all pushed into or near buy zones on that momentum .
Late Friday, Moody’s downgraded the U.S. credit rating from Aaa to Aa1, citing ballooning debt and interest costs. That news knocked futures down 0.8%–1.3%, reminding investors that even a powerful uptrend can be fragile. Heading into the week, focus remains on names with solid setups—Broadcom and Meta chief among them—while steering clear of overextended stocks.
FIVE BUY-ZONE LEADERS: BOOKING, BYD, BOSTON SCIENTIFIC & MORE
A new crop of leaders has broken into buy zones, led by Booking Holdings and EV heavyweight BYD. In the latest “power trend” rally, Booking jumped 4.8% after beating Q1 sales and earnings, while BYD ripped 12.1%—its BEV sales outpaced PHEVs and it’s up 64.6% YTD .
Rounding out the list: Boston Scientific (+3.1%) on robust device sales, Heico (+39%) on aerospace/defense demand and LandBridge, which is pivoting from Permian land leasing into data-center development. All five boast top Composite, EPS and Relative Strength ratings—key watchlist candidates if you’re chasing growth setups.
Stock Spotlight
Construction Partners ($ROAD ( ▼ 6.21% ) )
Paving the Way in Infrastructure Growth
Construction Partners (NASDAQ: ROAD) is gaining attention for its performance in the road and highway construction sector, particularly in the Sunbelt states. The company reported a notable turnaround in its March-ended quarter, achieving earnings of $0.08 per share compared to a loss in the same period last year. Revenue increased by 54% year-over-year to $571.7 million. With a record project backlog of $2.84 billion and recent acquisitions in Tennessee, the company is positioning itself for continued growth.
Currently, ROAD stock is approaching a buy point of $103.69 within a 22-week cup base formation. It holds a top-tier IBD Composite Rating of 99, indicating strong performance metrics. The stock's relative strength line is reaching new highs, suggesting it is outperforming the broader market. With a 21-day average true range of 4.41%, the stock exhibits moderate volatility, which may appeal to investors seeking steady growth opportunities.
📊 Key Facts:
Current Price: Approximately $100.50
Q1 Revenue: $571.7 million (54% year-over-year increase)
Projected FY2025 Revenue: $2.77–$2.83 billion
Net Income Forecast: $106–$117 million
Project Backlog: $2.84 billion
🧠 What This Teaches Traders:
Companies with strong backlogs and consistent earnings growth can offer promising investment opportunities.
Monitoring technical indicators, such as relative strength lines and base formations, can aid in identifying potential entry points.
Understanding a company's market position and expansion strategies can provide insights into its 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.