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.
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Daily Lesson(each builds onto the next)
📝 Today, You’ll Learn:
✅ How to spot the highest-potential stocks before they break out.
✅ What key criteria O’Neil and Minervini used to build winning watchlists.
✅ How to organize and review your watchlist daily for readiness and clarity.
Your watchlist is your offense.
It’s where you track the strongest stocks so you’re ready to strike when the market gives you the green light.
But most traders treat watchlists like cluttered folders.
Elite traders treat them like scouting reports—focused, curated, and ranked.
📖 William O’Neil advised:
“You can’t buy a great stock if you don’t already know it’s great. Your job is to find them before they move.”
Let’s build your watchlist the way professionals do.
🎯 The 4-Step Process to Building a Pro-Level Watchlist
✅ 1. Screen for Fundamentals That Drive Big Moves
Look for stocks with:
Quarterly EPS growth of +25% or more
Annual EPS growth for 3 years or more
Strong ROE, sales, and profit margins
Top 20% in Industry Group Ranking
📖 O’Neil’s CAN SLIM system prioritizes:
“Current earnings, annual earnings, and new product leadership. That’s where the monster moves come from.”
✅ 2. Use Technical Setups to Identify Readiness
Cup-with-handle, flat base, or tight consolidation.
Tight action near highs, RS line moving up.
Stocks forming pivot points but haven’t broken out yet.
📖 Mark Minervini said:
“When a stock is ready to move, the setup screams at you—tight ranges, dry-up in volume, coiling price.”
✅ 3. Group Stocks by Stage and Rank Them
Organize into 3 categories:
Ready Now: Stocks near breakout point, showing volume dry-up
Needs More Time: Stocks building bases, still forming
Former Leaders: Monitor for second setups or rebounds
✅ 4. Review Daily and Set Alerts
Check each stock’s chart daily.
Use alerts for key breakout levels.
Remove laggards or weak setups weekly—don’t clutter your focus.
📖 Jesse Livermore warned:
“The greatest mistake is to confuse activity with analysis. Focus on the leaders—nothing else matters.”
📉 Common Watchlist Mistakes
❌ Adding too many stocks without clear criteria
❌ Holding outdated names long after their setups fail
❌ Tracking everything, but committing to nothing
❌ Ignoring industry group strength
📌 Trader’s Checklist: Your Watchlist Rules
✅ Is every stock on your list in the top 20% of all stocks (Composite Rating/RS Rating)?
✅ Does it have explosive earnings or sales growth?
✅ Is it forming a proper base or near a pivot?
✅ Is it part of a leading sector or industry group?
✅ Have you cleared out stocks that no longer qualify?
🎯 Action Step: Curate and Clean Your Watchlist
✅ Use a tool like:
✅ Then:
Remove 3–5 “dead weight” stocks
Highlight 3 “Ready Now” setups
Set alerts at the breakout price
✅ Commit to reviewing this every day before the market opens.
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
Stocks flipped higher after weekly jobless claims topped forecasts, easing nerves over the rate outlook. The Nasdaq sprinted about 1.7% as Microsoft soared 9% and Meta climbed 4%, each riding upbeat quarterly results that brightened the tech mood.
The Dow gained more than 200 points and the S&P 500 advanced roughly 0.9%, with traders now eyeing Apple’s report after the bell and Friday’s payroll data for the next cue on growth and prices. Tesla and Nvidia helped keep buyers active, even with oil sliding and yields dipping.
Stock Spotlight
Electronic Components Maker Surges on Strong Q1 Performance
Amphenol (APH), a leading manufacturer of electronic connectors and interconnect systems, has reported impressive first-quarter results, positioning itself as a notable player in the electronic parts industry.
📊 Key Facts:
Q1 Earnings: Adjusted earnings per share increased by 58%, surpassing previous quarterly gains.
Revenue Growth: Sales rose by 48%, driven by organic growth in datacom, mobile devices, defense, and communications sectors.
Future Outlook: The company forecasts second-quarter sales between $4.9 billion and $5 billion, with adjusted earnings per share projected at 64 to 66 cents.
Analyst Sentiment: Analysts from Goldman Sachs, Citigroup, and JPMorgan have raised their price targets, with full-year EPS expected to grow by 38% on 31% higher sales.
Amphenol's robust performance is attributed to its diversified product portfolio and global presence, with over 300 facilities in more than 40 countries. The company's growth in AI-related products and consistent demand across sectors underscore its strong market position.
🧠 What This Teaches Traders:
Companies with diversified operations and global footprints can better navigate market challenges.
Strong earnings and revenue growth often lead to positive analyst revisions and stock momentum.
Monitoring companies' expansion into emerging technologies, like AI, can provide insights into future growth trajectories.
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.