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:
✅ What the 10-week moving average is and why it’s a trader’s best friend
✅ How O’Neil and Minervini used it to ride massive winners
✅ How to buy, hold, and sell using the 10-week line
✅ How to apply it to stocks, ETFs, and even Bitcoin
✅ Real-world examples that show exactly how this tool works
📝 Opening Thought:
Most traders know how to buy.
But very few know how to hold.
If you sell every time a stock dips, you’ll miss the big moves.
But if you hold too long without rules, you’ll give back your gains.
That’s why O’Neil, Minervini, and other great traders use a simple yet powerful guide:
The 10-week moving average—a line that shows when a trend is strong, and when it’s over.
📖 O’Neil wrote:
“The 10-week line is one of the most powerful tools for staying in strong stocks through their big moves.”
🔍 Why the 10-Week Line Is So Important
The 10-week line isn’t just a technical indicator.
It’s a trend tracking tool. It shows whether a stock (or crypto, or ETF) is still under accumulation by institutions—or if it’s starting to lose steam.
It solves three major beginner problems:
When to buy again after a breakout
How long to hold a trending stock
When to sell without guessing the top
📖 Mark Minervini emphasized:
“When a leading stock pulls back and finds support at its 10-week line, that’s where you want to be watching closest. The best stocks ride the line on their way to triple-digit returns.”
📐 What Is the 10-Week Moving Average?
It’s the average closing price over the past 10 weeks, shown on a weekly chart.
It gives you a smooth, slow-moving view of a stock’s long-term trend.
You can use it to:
✅ Spot second entry points
✅ Hold winning trades
✅ Exit when the trend ends
📊 Real-World Examples of the 10-Week Line in Action
✅ NVIDIA (NVDA) – 2023 Run
Broke out in January
Pulled back to the 10-week in February, March, and April
Bounced on volume every time
Stock doubled in 6 months
Traders who held through the 10-week line stayed in the trend
✅ Apple (AAPL) – 2004–2007
Multiple bounces at the 10-week over 3 years
Most “normal” investors sold early
But the 10-week line signaled strength again and again
Result: 400%+ gains for those who followed the line
✅ TSLA – 2019 to 2020
After breakout, TSLA rode the 10-week line for over a year
Each pullback gave traders a reason to doubt—but the line held
Anyone following the 10-week stayed in for a 5x move
🌐 Using the 10-Week Line for Crypto and Other Assets
The 10-week line isn’t just for stocks.
It works on anything with price data, including:
Bitcoin (BTC)
Ethereum (ETH)
Altcoins with large market caps
ETFs like QQQ and SPY
Index futures, forex, and more
📉 Bitcoin Example: 2023 Rally
Bitcoin broke out above $30K
Pulled back to the 10-week (~$38K–$40K) 3 times
Bounced strongly, each time
Uptrend continued until BTC closed below the 10-week for several weeks
That’s when smart traders started exiting or tightening stops
🧠 Why it works: Because all markets are driven by psychology. When traders trust a trend, they defend the 10-week line. When they abandon it, the line breaks.
📖 Livermore said:
“It’s not the price—it’s the behavior around the price that matters.”
🛠 How to Use the 10-Week Line: Buy, Hold, and Sell
🟢 Buy on a Bounce
After a breakout, wait for a pullback to the 10-week
If it touches the line and rebounds on volume, that’s your second entry
You enter with lower risk and clear support
🟡 Hold As Long As the Line Holds
One or two minor dips below the line? Okay—if it recovers fast
Volume should confirm—light on the pullback, heavy on the rebound
Stay in as long as trend + RS + volume = strength
🔴 Sell When It Breaks Cleanly
2+ weekly closes below the 10-week, especially on volume = exit
This signals institutional selling, not just noise
Better to exit with profit than ride a round trip
📌 Trader’s Checklist: Using the 10-Week Line
✅ Has the stock/crypto broken out and started trending?
✅ Is it pulling back in a controlled way to the 10-week line?
✅ Is volume declining on the pullback and rising on the bounce?
✅ Is the RS line rising or holding steady?
✅ Is the general market or crypto trend supportive?
If YES → consider buying
If the line breaks hard or fails to bounce → consider selling
🎯 Action Step: Apply the 10-Week Line Today
✅ Open a weekly chart for:
A stock you’re holding
BTC or ETH
An ETF you’re watching (like QQQ)
✅ Add the 10-week moving average
✅ Ask:
Is the price above it?
Has it bounced off it before?
What happened when it broke it last time?
✅ Set a price alert just under the 10-week on one strong stock or coin. Watch how it reacts.
🧠 Final Thought:
The 10-week line is a signal of strength.
As long as price respects it, institutions are likely still in control.
And when it breaks—it’s time to protect what you’ve earned.
📖 Minervini said:
“You don’t want to ride a rocket halfway and jump off. The 10-week keeps you onboard until the fuel’s gone.”
Stay focused. Follow the trend. And let the line guide your hold.
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
WAITING ON NVIDIA: WALL STREET STALLS AHEAD OF AI GIANT'S REPORT
Markets treaded water early Wednesday as traders held their breath ahead of Nvidia’s highly anticipated earnings report due after the close. The Nasdaq, S&P 500, and Dow showed only small moves, as investors stayed cautious. Nvidia inched higher in early trading, with the broader chip sector showing modest strength.
Elsewhere, Target shares dipped following soft earnings and a conservative forecast. TJX gained after upbeat retail numbers. With most major indexes hovering near record levels, Wall Street is watching Nvidia to see if the AI momentum can keep pushing stocks higher.
Stock Spotlight
Meta Platforms (META)
Tariff Relief and Q1 Earnings Fuel Meta's Rally
Meta Platforms (META) has rebounded with a 16.5% gain in May, driven by tariff reductions and a strong first-quarter earnings report. The U.S. government's decision to lower tariffs on Chinese goods from 145% to 30% positively impacts Meta's advertising revenue, particularly from e-commerce platforms like Temu and Shein. Additionally, Meta's Q1 earnings and revenue exceeded expectations, with the company forecasting accelerated sales growth for Q2.
Key Facts:
Current Price: Approximately $635.50
May Performance: Up 16.5%
Q1 Earnings: Exceeded expectations
Q2 Outlook: Projected faster sales growth
Technical Pattern: Forming a cup-with-handle with a 662.67 buy point
Composite Rating: 96
Relative Strength Rating: 83
What Traders Can Pick Up:
Policy Impact: Changes in trade policies can significantly influence advertising revenues for global platforms.
Earnings Influence: Strong earnings reports can bolster investor confidence and stock performance.
Technical Indicators: Recognizing chart patterns like the cup-with-handle can aid in identifying potential entry points.
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.