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’s Weekend Deep Dive, You’ll Learn:
✅ What the biggest stock market winners in history have in common.
✅ How O’Neil reverse-engineered over 600 winning trades to uncover these traits.
✅ How to apply this checklist to your watchlist and trade ideas immediately.
What separates a stock that moves 10% from a stock that moves 500%+?
It’s not magic. It’s a repeatable combination of technical and fundamental traits.
William O’Neil spent decades analyzing the top-performing stocks of every major bull market. What he found wasn’t random—it was a pattern of seven shared characteristics.
📖 William O’Neil wrote:
“If you study the greatest winners in history—stocks that went up 300%, 500%, even 1,000%—you’ll find they all had the same DNA before they took off.”
Let’s break that DNA down.
📈 The 7 Traits of Every Big Stock Winner
✅ 1. Current Quarterly Earnings Growth (The “C”)
EPS growth of at least +25%, often much higher.
Explosive earnings are the #1 fuel source for price explosions.
📖 O’Neil’s Rule:
“The best winners showed triple-digit earnings growth just before they broke out.”
✅ 2. Annual Earnings Growth (The “A”)
Sustained annual growth for 3–5 years.
Big winners show consistency, not just a lucky quarter.
Return on Equity (ROE) over 17% is a key benchmark.
✅ 3. New Product, Service, or Management (The “N”)
A new catalyst is often the spark that attracts big money.
New iPhone. New CEO. New drug approval. New distribution model.
📖 O’Neil noted:
“The word ‘new’ shows up in every market leader I’ve studied. Something new always triggers institutional interest.”
✅ 4. Supply and Demand – Shares Outstanding (The “S”)
Lower float = faster moves.
Institutional demand meets limited supply = rocket fuel.
Look for stocks with rising mutual fund sponsorship and shrinking float.
✅ 5. Leader, Not Laggard (The “L”)
Relative Strength (RS) of 90+.
Stock must be outperforming the general market before the breakout.
Never buy laggards hoping they’ll catch up.
📖 Jesse Livermore’s insight:
“I always bought the strongest stock in the strongest group.”
✅ 6. Institutional Sponsorship (The “I”)
Big winners are bought and held by mutual funds, hedge funds, and pension plans.
Look for increasing fund ownership—not decreasing.
Smart money leaves footprints.
✅ 7. Market Direction (The “M”)
Even the best stock will fail if the general market is in a correction.
Always align your trades with the overall trend of the NASDAQ and S&P 500.
📖 O’Neil emphasized:
“Three out of four stocks will follow the market. Learn to read the market first—then buy great stocks.”
💡 Real-World Examples of 7-Trait Winners
NVIDIA (NVDA) — Explosive earnings, AI catalyst, RS 99, strong sponsorship.
Apple (AAPL) — iPhone launch, monster earnings, RS leader, 10-week MA support.
Tesla (TSLA) — New business model, top RS, new institutional demand, low float.
Each of these ran 300%–1,000%+ because they checked every box before they broke out.
📌 Trader’s Checklist: Spotting a 7-Trait Winner
✅ EPS growth over 25% last quarter
✅ Annual EPS growth and ROE above 17%
✅ New product, catalyst, or turnaround story
✅ Float under 200M shares, rising volume
✅ RS Rating 90+ and rising RS line
✅ Sponsorship from 2+ respected mutual funds
✅ Confirmed market uptrend (follow-through day in place)
🎯 Action Step: Run the 7-Trait Test on Your Top Watchlist Name
✅ Pick 1 high-conviction stock.
✅ Score it against all 7 traits.
✅ How many boxes does it check?
✅ What is missing? What needs to improve before buying?
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
WEEKLY MARKET REVIEW: TECH EARNINGS & TRADE TEASE KEEP BULLS BUZZING
Last week, the big three indexes all chalked up roughly 3% gains, led by tech powerhouses Microsoft and Meta Platforms delivering knockout earnings. Even Berkshire Hathaway hit fresh highs, despite a 14% drop in Q1 operating earnings — Buffett says tariffs are biting, but the stock market isn’t listening.
Looking ahead: The Fed’s June rate-cut hints, Palantir’s Monday earnings, and whispers of renewed China talks are front-row stories. With Tesla hitting resistance and Uber, Vertex, DoorDash reporting soon, stick to leading names inside buy zones and stay nimble.
Stock Spotlight
JPMorgan Chase (JPM)
Banking Giant Nears Key Buy Point Amid Earnings Strength
JPMorgan Chase (JPM), the largest U.S. bank by assets and market capitalization, is approaching a buy point of $254.67, forming a double-bottom base. The stock has rebounded from losses tied to tariff announcements in early April and is now showing strong technical signals, including a 12% surge in the week of April 11 and closing above its 50-day moving average.
In Q1, JPMorgan reported earnings of $5.07 per share, surpassing estimates, with revenue increasing 8% to $45.31 billion, driven by record equities trading. CEO Jamie Dimon acknowledged economic challenges due to tariffs and inflation but expressed confidence in the bank's resilience. The broader banking sector is also showing signs of recovery, aided by a steepening yield curve and better-than-expected earnings from major banks.
📊 Key Facts:
Current Price: Approaching $254.67
Composite Rating: Not specified
Industry Group Rank: Money Center Banks
Pattern Type: Double-bottom base
Recent Performance: 12% weekly gain in mid-April; strong Q1 earnings
🧠 What This Teaches Traders:
Monitoring chart patterns like the double-bottom base can help identify potential entry points.
Strong earnings reports can signal a stock's resilience and potential for growth.
Industry trends, such as a steepening yield curve, can influence individual stock performance.
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.