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:
✅ How a ballroom dancer became one of the most successful self-taught traders of all time.
✅ What the “Darvas Box” method is—and how it captured monster trends.
✅ How his trend-following discipline complements CAN SLIM-style setups.
In the 1950s, Nicolas Darvas turned $10,000 into over $2 million—while touring the world as a professional dancer.
He did it not by watching financial TV or following rumors…
But by studying price and volume, and waiting patiently for stocks to break out of carefully defined "boxes."
📖 Darvas wrote:
“I became successful only when I accepted the idea that the stock market is a psychological game, not a logical one.”
📈 What Is the Darvas Box Method?
✅ 1. Identify a “Box” of Price Action
A Darvas Box forms when a stock trades within a tight range (consolidation).
The top and bottom of this box are the support and resistance levels.
Darvas only bought stocks that broke out of the upper end of the box on volume.
✅ 2. Enter on Breakout
Buy only when the stock breaks through resistance, signaling the start of a new uptrend.
This method helped him avoid false starts and wait for institutional strength.
✅ 3. Raise Your Stop As the Stock Moves Up
Darvas used trailing stop-losses, adjusting his floor higher as the stock formed new boxes.
This protected profits while keeping him in big moves longer.
📖 Darvas wrote:
“I did not care what the company made or what sector it was in. I only cared about price, volume, and trend.”
🔍 How This Aligns with CAN SLIM
Darvas’s approach shares DNA with O’Neil’s system:
Darvas Focus | CAN SLIM Equivalent |
|---|---|
Price breakouts | N = New highs, leadership |
Volume confirmation | M = Market timing & strength |
Trend following | L = Leaders, not laggards |
Cut losses fast | S = Supply & demand control |
📖 William O’Neil also taught:
“Most big winners start with breakouts on volume. That’s the signal the pros are piling in.”
📉 Mistakes Darvas Avoided
❌ Buying too early inside the base
❌ Listening to tips or hype
❌ Ignoring volume on breakouts
❌ Holding losing stocks out of hope
📖 Jesse Livermore warned:
“Men who can both be right and sit tight are uncommon. Darvas was one of them.”
📌 Trader’s Checklist: Applying the Darvas Box
✅ Is the stock trading in a tight sideways range (a box)?
✅ Is volume drying up inside the base?
✅ Is the RS line rising ahead of price?
✅ Are you waiting for a clear breakout above resistance on strong volume?
✅ Have you set a stop just below the box to limit risk?
🎯 Action Step: Try the Darvas Method on a Watchlist Stock
✅ Choose 1 high-RS stock forming a tight base.
✅ Draw the top and bottom of the box.
✅ Set a buy alert at the breakout level—and a stop at the bottom of the box.
✅ Wait. Don’t anticipate. Let price prove your thesis.
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
TRADE DEAL TEASE SENDS FUTURES HIGHER
Dow Jones futures climbed early Thursday after President Trump signaled a “major trade deal” with the United Kingdom. Hopes for easier cross‑Atlantic commerce lifted the Russell 2000 and set a positive tone across the board.
Standout movers such as MercadoLibre and AppLovin jumped on upbeat results, keeping tech in focus. Market watchers now wait for remarks from Federal Reserve Chair Jerome Powell, eager to see if rate worries cool even more.
Stock Spotlight
Stock Spotlight: Commvault (CVLT)
Data Protection Firm Reaches Buy Point After Earnings Beat
Commvault (CVLT), a provider of cloud-based data security solutions, has reached a buy point following its March-quarter earnings report. The company's performance has attracted attention, positioning it as a notable player in the data protection sector.
Key Facts:
Current Price: Approximately $174.63
Earnings Report: Commvault's recent earnings report has contributed to its stock reaching a buy point.
Market Position: The company's focus on cloud-based data security solutions aligns with growing demand in the industry.
What Traders Can Pick Up:
Earnings Influence: Strong earnings reports can positively impact stock performance.
Industry Trends: Companies specializing in data protection and cloud services are gaining prominence.
Technical Indicators: Reaching a buy point suggests potential for stock appreciation.
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.