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)
Before you can make money in the stock market, you need to understand what a stock actually is and why stocks create wealth over time.
A stock represents ownership in a company. When you buy a stock, you own a small piece of that business, giving you a share in its potential profits—and, of course, its risks.
📖 William O’Neil’s Insight:
“The stock market is the greatest wealth-creation tool in history. But you must understand it before you can profit from it.”
📖 Jesse Livermore’s Take:
“A stock operator has to fight against hope and fear. You must learn what a stock is and how it moves before you trade it.”
By the time you finish this newsletter, you'll understand stocks at a fundamental level and why they are the best way to build long-term wealth.
📊 What Exactly is a Stock?
A stock is a share of ownership in a company. Companies sell shares to the public in order to raise money for expansion, research, and operations.
When you buy a stock, you become a shareholder, which means:
✅ You own a piece of the company.
✅ You benefit if the company grows (stock price rises).
✅ You can receive dividends if the company pays profits to shareholders.
📖 Example:
If you had bought $1,000 worth of Apple (AAPL) stock in 2004, your investment would have grown to over $500,000 by 2024.
📈 Why Stocks Outperform Other Investments
Many people believe real estate or bonds are safer investments, but historically, stocks have provided the highest returns over time.
Investment | Average Annual Return | Liquidity | Risk Level |
|---|---|---|---|
Stocks (S&P 500) | 10%+ | ✅ High | 🔥 Moderate |
Real Estate | 3-7% | ❌ Low | 🏠 Moderate |
Bonds | 2-5% | ✅ High | 💵 Low |
Savings Accounts | <1% | ✅ High | 💤 Low |
💡 Key Takeaway: Over long periods, stocks have created the most millionaires because of compound growth.
📖 Mark Minervini’s Take:
“Successful traders don’t buy stocks blindly. They buy the best stocks in the best markets at the best time.”
📉 Biggest Mistakes Beginners Make When Investing in Stocks
🚨 Avoid These Common Errors That Can Lead to Big Losses:
❌ Thinking of Stocks as Lottery Tickets
Stocks are businesses, not random bets. Invest in strong, growing companies.
❌ Buying Cheap Stocks Thinking They’re a Bargain
A $2 stock isn’t automatically a good deal. Bad stocks can always go lower.
❌ Ignoring Market Conditions
Even the best stocks fall in bear markets. Timing matters.
📖 Jesse Livermore’s Warning:
“The market does not beat them. They beat themselves—by not following the rules.”
📖 Example of a Costly Mistake:
In 2008, investors bought Lehman Brothers stock thinking it was "cheap" at $10—it went to zero within months.
🎯 Optional Action Step: Your First Stock Research Assignment
✅ Go to Yahoo Finance or Google Finance.
✅ Search for a well-known company like Apple (AAPL), Amazon (AMZN), or Microsoft (MSFT).
✅ Look at its historical stock price chart—notice how it has grown over the years.
👉 Reply to this email: What stock do you think has the most long-term potential today?
🔥 I’ll feature the best answers in an upcoming newsletter!
⏭️ Coming Up Next:
📌 Tuesday’s Lesson: “Why Stocks Are the Best Long-Term Investment”
You’ll learn why even in volatile markets, stocks continue to be the best asset class for long-term wealth building.
🚀 Stay disciplined & keep learning!
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
SPOTIFY TURNS UP THE VOLUME WITH PROFITS & NEW FEATURES
Spotify is ON FIRE! The streaming giant's stock just hit an all-time high as it shifts its focus to profitability. With a forecasted earnings jump to $2.08 per share and subscriber numbers expected to hit 259.5 million, this is a company on the rise. But that’s not all—they’ve got big plans, including a premium “Supremium” tier for superfans and expanded video content to boost advertising dollars. Did I mention they paid $10 BILLION to the music industry last year? Yeah, they’re not playing around.
👉 Read how Spotify is revolutionizing streaming here: Full Story
SHOPIFY ENTERS BUY ZONE WITH MASSIVE SALES GROWTH
Shopify is making ALL the right moves. With a 167% spike in earnings and $11.5 billion in sales just during Black Friday-Cyber Monday, this e-commerce king is taking over. The stock just surged into a buy zone, up 9%, and is backed by none other than Cathie Wood’s ARK Innovation ETF. They’re crushing it with new partnerships (Netflix, anyone?) and subscription revenue growth. This stock has skyrocketed 5,858% since its IPO in 2015—are you paying attention yet?
👉 See why Shopify could be your next big move here: Full Story
HARMONY BIOSCIENCES HITS NEW HIGH WITH RS RATING BOOST
Biotech fans, take note—Harmony Biosciences just got a power-up. Its Relative Strength (RS) Rating jumped from 70 to an impressive 83, putting it in elite territory among stocks. Translation: this company is gaining momentum and outperforming its competitors. If you’re looking for a breakout stock in the healthcare space, this might be the one to watch.
👉 Get the scoop on Harmony Biosciences here: Full Story
Stock Spotlight
Feature Stock: Shopify (SHOP)
Shopify (SHOP) is a powerhouse in the retail software space, making waves with its impressive financial growth and robust market position. The company, known for its easy-to-use e-commerce platform, has consistently delivered strong results, showcasing 26% sales growth in Q3 2024 to $2.16 billion and a 167% surge in earnings per share. Even during volatile market conditions, Shopify's stock stands resilient, recently breaking above its 50-day moving average with a 9% increase.
Shopify's partnerships with big names like Netflix and Mattel, along with its subscription-based revenue model, cement its leadership in the retail tech arena. The company also offers creative payment solutions, such as its collaboration with Affirm for installment payments in the U.S. Notably, Shopify boasts a 99 Composite Rating(we’ll learn about this later on. For now, the higher, the better) and a jaw-dropping 5,858% return since its IPO in 2015. It’s no wonder Cathie Wood’s ARK Innovation ETF holds substantial shares of SHOP—it's a top performer in the enterprise software sector.
Why This Matters:
For busy professionals, Shopify proves the value of tracking leading enterprise stocks with consistent sales growth and strategic partnerships. Its ability to deliver strong results over six straight quarters makes it a prime example of a resilient growth stock in uncertain markets.
Quick Way to Remember This Trade:
"Shop Shopify before it pops!"Its consistent growth, strategic partnerships, and resilience in tough markets make SHOP a standout performer you won’t want to miss.
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.