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:
✅ Why correct position sizing is critical for long-term profitability.
✅ How top traders like O’Neil and Minervini size positions to maximize gains and limit risk.
✅ A simple formula to determine how much to buy—without overexposing yourself.
How much you buy matters just as much as what you buy.
Position sizing is one of the most overlooked—but most powerful—levers for growing your trading account safely.
📖 William O’Neil taught:
“The quickest way to go broke in the market is to bet big on every idea. Concentrate on quality—but size intelligently.”
The best traders don’t randomly decide how many shares to buy.
They base it on risk, conviction, and structure—not emotion. Let's walk through how they do it.
📈 How Top Traders Size Their Trades
✅ 1. Risk-Based Position Sizing
Always start by defining your dollar risk on the trade (usually 1%–2% of total capital).
Divide your dollar risk by the difference between your buy price and stop-loss price.
That’s how many shares you can buy.
Simple Formula:
Position Size = Dollar Risk ÷ (Entry Price – Stop Loss Price)
📖 Example:
Trading a $50 stock with a stop at $47.
$10,000 account; risking 1% = $100.
$100 ÷ ($50 - $47) = ~33 shares.
✅ 2. Confidence-Based Scaling
On high-probability setups (perfect bases, market in uptrend), traders may risk closer to 1.5%-2%.
On lower-quality setups or choppy markets, risk only 0.5%-1%.
📖 Mark Minervini shared:
“My best trades were also my biggest positions—but I earned the right to be big by the quality of the setup.”
✅ 3. Add-On Correctly, Not Recklessly
Only add to a trade after the stock has proven itself—not on a hope.
Add-ons should be smaller than the initial position and made at logical points (e.g., breakouts, 10-week rebounds).
📉 Common Mistakes with Position Sizing
❌ Betting too big on speculative or unproven setups
❌ Risking the same amount on weak setups and A+ setups
❌ Adding to losing positions (averaging down)
❌ Not adjusting size when volatility increases
📖 Ed Seykota warned:
“The elements of good trading are: cutting losses, cutting losses, and cutting losses.”
Sizing wrong magnifies every other trading error.
📌 Trader’s Checklist: Proper Position Sizing
✅ Have I calculated my exact dollar risk before buying?
✅ Am I adjusting size based on market conditions and setup quality?
✅ Have I identified my stop-loss in advance?
✅ Am I willing to cut quickly if the stop is hit?
✅ Is my portfolio balanced—not overexposed to one idea or sector?
🎯 Action Step: Master Your Sizing
✅ Pick 3 trades you’re currently holding (or planning).
✅ For each one, answer:
What is my total dollar risk?
What percentage of my account am I risking?
Would I still be emotionally calm if this trade stopped out?
✅ If not—resize before it's too late.
⏭️ Coming Up Next:
📌 Tuesday’s Lesson: Why You Must Cut Losses Fast – The Golden Rule of Trading
Learn why fast exits are the key to surviving—and thriving—long term.
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 SURGE ON TARIFF HOPES AND MEGACAP EARNINGS BUZZ
The stock market EXPLODED higher last week — and yes, it finally confirmed a new uptrend! 🚀 Thanks to some positive vibes around Trump tariffs, the S&P 500 and Nasdaq smashed through resistance. Leading stocks broke out left and right, and with earnings from Meta, Microsoft, Apple, AND Amazon coming this week, the action is just getting started. Spoiler alert: Tesla also made a huge move... even after a rough earnings report. (Robotaxis, anyone?)
But listen — the game isn't over. We've got big economic reports coming (hello, PCE inflation + jobs data 👀), and this rally is still headline-driven. I’m adding exposure slowly, keeping my watchlist 🔥, and staying ready to pivot if things turn fast. Now is the time to stay sharp, stay flexible, and keep stacking those wins!
Stock Spotlight
📈 Boston Scientific (BSX) — A Healthy Pulse for Growth
Boston Scientific (Ticker: BSX) is making serious waves in the healthcare sector. Fresh off its Q1 2025 earnings report, the company posted net sales of $4.663 billion, a 20.9% jump compared to last year. Even more impressive? Adjusted EPS came in at $0.75, beating last year’s $0.56 — a solid indicator of efficient operations and strong demand.
Digging deeper:
Cardiovascular Segment: 🚀 Up 26.2% — heart devices are clearly in demand.
MedSurg Segment: 📈 Grew by 11.7% — another sign of broad-based strength.
U.S. Market: 🏆 Led the way with a 31.1% increase in sales.
On the strategic front, Boston Scientific isn't just relying on organic growth. It completed the acquisition of Bolt Medical and announced plans to acquire SoniVie, expanding their tech edge in minimally invasive treatments.
Technical traders will love this: BSX is forming a double bottom base — a classic bullish pattern suggesting momentum could be building for a breakout.
Bottom Line:Busy professionals looking for a stock combining strong fundamentals + technical promise should keep BSX on their radar. It's a powerful mix of innovation, expansion, and market leadership.
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.