In partnership with
The key to a $1.3T opportunity
A new trend in real estate is making the most expensive properties obtainable. It’s called co-ownership, and it’s revolutionizing the $1.3T vacation home market.
The company leading the trend? Pacaso. Created by the founder of Zillow, Pacaso turns underutilized luxury properties into fully-managed assets and makes them accessible to the broadest possible market.
The result? More than $1b in transactions, 2,000+ happy homeowners, and over $110m in gross profits for Pacaso.
With rapid international growth and 41% gross profit growth last year, Pacaso is ready for what’s next. They even recently reserved the Nasdaq ticker PCSO.
But the real opportunity is now, before public markets. Until 5/29, you can join leading investors like SoftBank and Maveron for just $2.80/share.
This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.
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)
The anatomy of a bullish flag & why it works
Three quick “go / no-go” tests before you risk a dollar
How William O’Neil sized into flag break-outs—plus Marc Minervini’s twist
NEW: What Bitcoin’s pause above $100 K is telling growth-style traders right now
A Jesse Livermore reminder on “lines of least resistance”
Quick Definition (☕ 30-second recap)
A bull flag is a brief, downward-tilted rest after a strong vertical run of ~25 – 100 % in four to eight weeks. It represents nothing more than profit-taking and “weak-hand” shaking—not wholesale distribution. When volume dries up and price tightens near the top half of the flag, institutions have quit selling and are often quietly buying—setting the stage for the next leg.
Step-by-Step Breakdown
Flag Phase | What to See | O’Neil/Minervini Checklist |
|---|---|---|
Pole | 25 – 100 % advance in ≤ 8 weeks; momentum > market | RS Rating ≥ 90; volume spikes +40 – 100 % on at least two up-weeks |
Flag | 10 – 25 % pullback, drifting down or sideways on declining volume | Flag length ≤ 3 weeks (classic) or ≤ 5 weeks (loose markets) |
Dry-Up | 3–7 tight daily closes, volume < 50 % of pole average | SMAs converge; price finds support ~21-ema |
Breakout | Clears the high of the flag on volume +40 % versus prior day | Buy ≤ 5 % past pivot; pyramiding OK if price holds 20-dma |
Real-World Charts to Study
Ticker | Why It’s Textbook |
|---|---|
NVDA | Feb-24 flag off AI-chip euphoria, 14-day pullback, volume dried 65 % ↓, then exploded +40 % on breakout |
SMCI | 32 % pole, 11-day flag; anchored VWAP acted as rally springboard |
CELH | Two-week “tight flag,” no close > 3 % below 21-ema; Minervini’s VCP concept overlapped |
DXCM | Long-flag variant: three micro-flags inside a 5-week shelf—O’Neil’s flag-on-flag phenomenon |
BTC-USD | Right now: Bitcoin launched from $73 K in March to an all-time-high $110 K, pulled back to the psychological $100 K “century mark,” and is tracing a three-week downward drift on falling volume. As long as price stays above the prior breakout zone (~$92 K) and volume contracts, crypto traders may be watching for a high-volume push through ~ $110 K to confirm a handle-type breakout—identical principles, different asset. |
Key Take-Aways 🎯
The pole tells you demand is real. —Livermore’s “line of least resistance” is upward; don’t fight it.
Tight flags = strong hands. Loose, wide flags are usually weak; leaders maintain discipline.
Volume is the fingerprint of funds. Pole ↑ = buying; flag ↓ = selling dries up; breakout ↑ = fresh demand.
Context matters: fourth- or fifth-stage flags late in a long trend fail far more often.
Applies to anything with a chart. Whether it’s AMZN in 2009, NVDA in 2024, or Bitcoin testing six figures today—the setup, the psychology and the rules are the same.
Quote of the Day
“Remember that stocks are never too high for you to begin buying or too low to begin selling.”
— Jesse Livermore, Reminiscences of a Stock Operator
Homework
Print the NVDA and BTC charts; annotate volume spikes, flag highs/lows, and the breakout pivot.
Run a MarketSmith/MarketSurge screen: “Price ↑ 25 % in 8 weeks, Flag Length ≤ 3 weeks, Volume Dry-Up 50 % +.”
Re-read O’Neil’s How to Make Money in Stocks, Chapter 2, pp. 63-70 on flags; follow with Minervini’s Trade Like a Stock Market Wizard, Chapter 7 on high-tight patterns.
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.
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.