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:
✅ The legendary rise and fall of Jesse Livermore—one of the most influential traders in history
✅ What he got right—and what ultimately destroyed him
✅ The timeless mindset lessons you can apply to your trading today
✅ Why trading psychology is just as important as strategy
📝 Opening Thought:
He made over $100 million in a single market crash.
He was so influential, other traders would watch his face for clues on Wall Street.
And yet, Jesse Livermore died broke—because he mastered the market, but not himself.
📖 Livermore wrote:
“The market is never wrong—opinions often are.”
His story is both an inspiration and a caution.
And today, we’ll unpack what made him legendary—and where he went tragically off track.
🧠 Jesse Livermore: A Self-Taught Pioneer in a Bookless Market
Jesse Livermore didn’t have online courses, backtesting software, or a coach.
He started in 1891 at age 14 as a chalkboard boy in a Boston bucket shop—copying prices from ticker tape to blackboard.
That job became his education.
He noticed that price movements followed patterns, and those patterns followed human behavior.
By age 15, he placed his first trade—a $3 profit on $5 risked—and was instantly hooked.
📖 He later said:
“I learned to watch the market, not the news. And I learned to trade by watching price behavior.”
By his early twenties, he had made so much money that he was banned from most bucket shops.
So he moved to New York and started trading with real money on Wall Street.
Livermore developed many of the core principles modern traders still use today—all without a mentor, textbook, or trading software.
✅ His Greatest Wins
📉 1907 Panic – Shorted the Market, Made $3 Million
Recognized instability early
Took a massive short position
Stayed in as panic unfolded
📉 1929 Crash – Made $100 Million
One of the few who anticipated the top
Shorted aggressively
While others were wiped out, Livermore was on the front page of newspapers
📖 He wrote:
“I never argue with the tape. I just follow where it leads.”
🔥 What He Got Right
✅ 1. He Followed Trends Relentlessly
Waited for confirmation
Never fought the market
Let price prove the direction—then committed fully
✅ 2. He Studied Behavior, Not Headlines
Focused on how stocks reacted to news, not the news itself
Watched for tape tells that revealed buyer or seller strength
✅ 3. He Scaled In and Cut Losses Fast
Added to winners—not losers
Accepted small losses as part of the business
Trusted his stop-loss more than his opinions
📖 He said:
“The speculator’s chief enemies are always boring from within—fear, greed, hope, and ignorance.”
💔 What He Got Wrong
❌ 1. He Abandoned His Rules During Success
After huge wins, he became overconfident
Took massive, unconfirmed positions
Ignored stops and added to losers
❌ 2. He Took on Leverage and Emotion
Tried to regain losses with high-risk bets
Became emotionally attached to trades
Lacked a system for when markets changed
❌ 3. He Treated Trading Like a Casino at the End
No journal, no position-sizing discipline
Fortune fluctuated wildly
Ended his life bankrupt and disillusioned
📖 William O’Neil reflected:
“He understood price better than anyone—but forgot that discipline is the real key to long-term success.”
🧠 Timeless Lessons from Jesse Livermore
✅ “It was never my thinking that made the big money. It was my sitting.”
Learn to sit with winners. Patience is profit.
✅ “A loss never bothers me after I take it. I forget it overnight.”
Losses are normal. Cut them quickly—move on faster.
✅ “The market does not beat them. They beat themselves.”
Your emotions—not your method—will make or break you.
✅ “A man must know himself thoroughly if he is going to make a good job out of speculating.”
Self-awareness > intelligence in trading.
✅ “There is only one side of the market—and it is not the bull side or the bear side, but the right side.”
Trade with the trend. Leave opinions behind.
📚 Want to Learn More About Livermore?
If you’d like to dive deeper into his story and strategies, start with these two classics:
📘 1. Reminiscences of a Stock Operator
By Edwin Lefèvre
A semi-biographical novel based on Livermore’s life—widely considered a must-read for any serious trader.
📖 Quote:
“The professional concerns himself with doing the right thing, rather than with making money.”
📘 2. Jesse Livermore: World’s Greatest Stock Trader
By Richard Smitten
A more detailed biography with breakdowns of his actual trades and strategies.
📖 Quote:
“Livermore wasn’t a genius. He was just obsessed with learning from his own mistakes—and repeating his best moves.”
📌 Trader’s Checklist: Are You Thinking Like Livermore at His Best?
✅ Am I trading what I see—not what I hope?
✅ Do I have rules—and follow them after wins and losses?
✅ Do I cut losses immediately?
✅ Am I sitting in strength—or flinching out of fear?
✅ Do I treat trading like a business—not a game?
🎯 Action Step: Livermore Reflection Log
Tonight, write down these three questions:
When was the last time I broke my rules—and why?
What trade would I take again today, exactly the same?
If I had Livermore’s discipline this week, what would I have done differently?
Your future self will thank you for the answers.
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 $58.
📊Chart Example:
Use these market tools to scan for and review stocks:
✅ MarketSmith (MarketSurge) – Premium Market Analysis and Scanner Tool
✅ Charts.com – Budget-Friendly Charting Option
✅ TradingView – Free & Subscription Stock and Crypto Charts
✅ DeepVue – MarketSurge Inspired Analysis and Scanner
👀 Seeing real-world stock patterns helps train your eye for long-term trends.
Our Sister Newsletter. Because everyone’s a Beginner in something.
News(Sunday recap)
BIG WEEK FOR BULLS: NASDAQ SOARS 7%
Stocks sprinted higher over the past five sessions, leaving tariff talk and shaky health-care news in the rear-view mirror. The Nasdaq sprinted 7.1%, the S&P 500 climbed 5.3%, and the Dow put on 3.4%, with every index closing near weekly peaks and clearing its 200-day line. A cooler April CPI print on Wednesday lit the fuse, and buyers never looked back. Coinbase’s leap into the S&P 500, Broadcom pressing toward fresh highs, and a wave of AI-chip optimism kept growth names in charge.
Breadth improved, small-caps joined the move, and the S&P 500 and Nasdaq entered a “power trend,” a sign that big money is leaning bullish. Even a 15% slide in UnitedHealth early in the week barely dented momentum. With Nvidia earnings and more Fed chatter on deck, traders will soon see if this playbook still works, but for now the up-trend has wind in its sails.
Stock Spotlight
Netflix ($NFLX ( ▲ 3.26% ) )
Ad-Backed Streamer Keeps the Camera Rolling
Netflix took center stage at the 2025 upfronts, telling Madison Avenue its advertising tier now reaches 94 million monthly users — a 34 percent lift since November. The service rolled out new ad-tech tools and fresh brand tie-ins while teasing fan-favorite series like Stranger Things and Bridgerton returning later this year.
Key Facts
Price (mid-session): ≈ $1,178
Ad-tier reach: 94 million MAUs, +34 % since November
IBD placements: Leaderboard, SwingTrader, IBD 50, Big Cap 20
Analyst targets: BMO $1,200; Evercore $1,150
Chart setup: Shelf within a three-weeks-tight pattern after an early-May breakout
What Traders Can Learn
Multiple revenue levers – Adding ads gives Netflix a second engine beyond subscriptions, smoothing cash-flow swings.
Content rhythm matters – A steady pipeline of proven hits can support user growth and help limit churn.
Tight patterns flag support – Shelves and three-weeks-tight bases often mark pauses where big funds defend positions, offering clues for follow-on entries.
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.