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 professional traders focus on risk first—returns second.
✅ The essential risk rules used by O’Neil, Minervini, and Seykota.
✅ How to build a simple risk strategy that keeps you in the game long enough to win.
Most traders ask, “How much can I make?”
Pros ask, “How much can I lose—and am I okay with that?”
📖 William O’Neil stated:
“The whole secret to winning big in the stock market is not to be right all the time—but to lose the least amount possible when you’re wrong.”
Risk management isn’t something you “add later”—it’s the foundation of professional trading. Let’s break it down.
🛡️ The 3 Pillars of Smart Risk Management
✅ 1. Never Risk More Than 1–2% Per Trade
That means if you have $10,000, the maximum loss on any single trade should be $100–$200.
Keep your risk small so that a single trade never knocks you out of the game.
📖 Ed Seykota (from Market Wizards) said:
“The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses.”
✅ 2. Cut Losses Fast—Always Under 7–8%
O’Neil’s rule: Sell a stock if it drops more than 7–8% from your buy point. No exceptions.
Great traders are wrong often. The difference? They take small losses and move on.
📖 Mark Minervini added:
“Being wrong is not a problem. Staying wrong is.”
✅ 3. Plan Your Stop Before You Enter
Never buy a stock without knowing:
– Where is your stop-loss?
– How much capital are you risking?
– What’s your expected gain (risk/reward ratio)?
📉 Mistakes to Avoid When Managing Risk
❌ Risking too much on “sure things”
❌ Averaging down or moving stops lower
❌ Taking profits early but letting losers run
❌ Ignoring portfolio risk (too many correlated trades)
📖 Jesse Livermore’s classic lesson:
“The real money is made by sitting tight on winners—and cutting the losses quickly.”
📌 Trader’s Checklist: Your Personal Risk Rules
✅ Am I risking 1–2% of capital or less per trade?
✅ Have I defined my stop-loss before entering the trade?
✅ Is my risk/reward ratio at least 2:1 or better?
✅ Am I sticking to my plan when the trade goes against me?
✅ Am I reviewing risk across the whole portfolio, not just one stock?
🎯 Action Step: Define Your Risk Management Rules
✅ Choose a recent or active trade and answer:
What’s your exact dollar risk?
What’s your stop-loss price?
What % of your capital is at risk?
Would you take this trade again if you saw it fresh?
✅ Bonus: Create a card or note with your personal “Risk Commandments” and review it before every trade.
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 SHAKE OFF TARIFF TENSION AND RALLY HARD 💥
The bulls came out swinging Thursday — and they didn’t let a little trade drama slow them down. Even with new tariff talk from Trump and pushback from China, the Dow, S&P 500, and Nasdaq all climbed for the third day in a row.
Meanwhile, ServiceNow (NOW) exploded nearly 15% after a knockout earnings report. On the flip side, IBM tanked 6% despite solid numbers. And gold player Newmont (NEM) shined, inching closer to a key breakout point. Add in a blowout durable goods report and decent jobless claims, and you've got a market that’s refusing to flinch.
Want the full story, including all the stock standouts?Read today’s live market recap here →
Stock Spotlight
📈 Feature Stock of the Week: Netflix (NFLX)
Netflix (NFLX) is making headlines again — and not just for its hit shows. The streaming giant delivered a blockbuster first quarter in 2025, with revenue jumping 12% year-over-year to $10.54B and net income surging to $2.89B. That’s $6.61 per share, topping Wall Street’s expectations.
But there’s more to this story than just strong earnings.
Netflix is playing smart and thinking long-term. It’s doubling down on its ad-supported tier, with plans to double ad revenue in 2025. By offering more affordable plans, Netflix is widening its reach — all while keeping margins healthy.
Add in a $17B annual content budget (hello, Squid Game and Stranger Things) and a shift from just chasing subscribers to focusing on revenue growth, and it’s clear: Netflix is evolving.
Wall Street is taking note. Morgan Stanley called NFLX a "top pick," and analysts are raising price targets, thanks to its resilient model in a tough economy.
Long-term vision? Aiming for $1 trillion market cap by 2030. Ambitious? Yes. Impossible? Not with this kind of momentum.
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.