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 Follow-Through Day (FTD) actually is—and why it matters
✅ Step-by-step: how to identify it on a chart
✅ How it helps you know when it’s time to start buying again
✅ Real historical examples and what happened after each one
✅ What to do if an FTD fails
📝 Opening Thought:
If you've been sitting in cash during a market downturn, one of the scariest things to do is start buying again.
What if the market’s just bouncing? What if it drops again right after you jump in?
That’s why William O’Neil developed the Follow-Through Day.
It’s a specific signal that helps you recognize when the market may be turning the corner and a new uptrend is starting.
📖 O’Neil wrote:
“The Follow-Through Day is the single most reliable signal that a new bull market may be beginning.”
Let’s break this down clearly—step by step.
🧠 What Is a Follow-Through Day?
A Follow-Through Day (FTD) is a confirmation signal.
It tells traders:
✅ The correction might be over
✅ Buyers—especially big institutional buyers—are coming back
✅ It may now be safer to start buying strong stocks again
But here’s the key: you don’t guess. You wait for specific conditions.
✅ The 3 Things That Make a Follow-Through Day Valid
1. Timing: It Happens on Day 4–10 of a Rally Attempt
Day 1 = the market makes a low and closes higher (this starts your "rally attempt")
From there, you count the days forward
A FTD must occur on day 4 through 10 of that attempt—not before, not after
📌 Why?
The first 1–3 days are usually just a reflex bounce. The market hasn’t proven anything yet.
You need to wait for true buying to show up.
2. Price: The Index Rises at Least 1.2% (Some Use 1.5%)
The NASDAQ or S&P 500 must gain at least 1.2%–1.5%
This tells you buyers are committing in a noticeable way
3. Volume: Volume Is Higher Than the Day Before
This is critical. Volume = conviction.
If the market goes up on low volume, it could just be noise or short covering.
Rising price + rising volume = real demand.
📖 O’Neil emphasized:
“No volume = no conviction. A true uptrend begins when big money starts moving back in.”
🔁 What Comes Before the FTD: Rally Attempt
Before you get a FTD, the market must start a rally attempt.
Here’s how that sequence works:
The index closes higher after a downtrend = Day 1
The index stays above that Day 1 low for the next few sessions
You watch for a FTD between Day 4 and Day 10
If no FTD appears and the market breaks the Day 1 low → Rally attempt is over → Reset the count
This helps you avoid jumping in too early.
It keeps you disciplined and patient, waiting for confirmation.
📊 Real-Life Examples of Follow-Through Days
📅 Example 1: March 10, 2009 (Post-Financial Crisis Bottom)
Day 1 of rally attempt: March 6
FTD: March 10 – NASDAQ rose 4.1% on higher volume
Leaders like AAPL and AMZN began to tighten up
Market rallied for years afterward
📅 Example 2: April 6, 2020 (Post-COVID Crash Recovery)
Market bottomed in late March
Day 1 rally started March 24
FTD on April 6 – NASDAQ jumped 7.3% on heavy volume
Growth names like TSLA, SHOP, and NVDA began new runs
A new bull market was born
📅 Example 3: January 6–9, 2023 (Post-2022 Bear Market)
Market made a low end of December
NASDAQ FTD came on January 6
Volume spiked, RS names broke out
Stocks like SMCI and META started fresh leadership cycles
🔄 What Happens After a Follow-Through Day?
Once you get a valid FTD:
The market is considered in a "confirmed uptrend"
It’s your green light to begin buying breakouts selectively
You start looking for stocks forming proper bases with strong earnings and RS
You focus on volume, structure, and tight action
📖 O’Neil said:
“You don’t have to buy everything right away. The FTD gives you permission to test the waters, and scale up as strength builds.”
⚠️ What If the FTD Fails?
Sometimes the market fakes you out.
If the market breaks back below the Day 1 low after a FTD, the uptrend is no longer valid.
You cut exposure, raise cash, and wait for a new FTD.
The good news?
Even if a FTD fails, you’ve protected your capital by acting with rules—not emotion.
📌 Trader’s Checklist: Spotting and Responding to a FTD
✅ Did a major index (NASDAQ or S&P 500) rise 1.2%+?
✅ Was volume higher than the previous day?
✅ Did the FTD occur between day 4–10 of the rally attempt?
✅ Are leading stocks setting up in bases—not breaking down?
✅ Have distribution days stopped piling up?
If YES → begin adding exposure gradually
If NOT → wait for confirmation
🎯 Action Step: Create a Market Trend Tracker
✅ Start a section in your trading journal or dashboard labeled “Market Status”
Track each day:
📉 Correction
🟡 Rally Attempt
✅ Follow-Through Day
🟠 Uptrend Under Pressure
🔴 Downtrend
Use this to stay grounded—not reactive.
🧠 Final Thought:
You don’t have to guess the bottom.
You just have to recognize when real buyers come back—and follow their lead.
The Follow-Through Day helps you do just that. It’s not perfect, but it’s powerful.
📖 O’Neil said:
“Buy when the market tells you to. Not when you feel like it.”
Let the tape guide you.
The FTD is your first whisper that it’s time to shift from defense… to offense.
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
HOME DEPOT SHINES AS SIX-DAY RALLY HITS A SPEEDBUMP
The Dow slipped 0.2% and the S&P 500 fell 0.3%, putting the index’s six-session win streak in danger. The Nasdaq lost 0.4%. Bright spot: Home Depot rose about 1% after topping sales goals and sticking with its 2025 outlook. Outdoor-gear maker Amer Sports surged nearly 20% on strong results.
Tech names showed mixed action—Microsoft and Tesla held earlier gains, but Apple, Amazon, Nvidia, and Robinhood edged lower. Treasury yields crept to 4.49%, while oil eased near $62.60. Traders now turn to reports from Lowe’s, Target, and Palo Alto Networks later this week for the next cue.
Stock Spotlight
Broadcom (AVGO)
Chipmaker Builds Momentum Ahead of Earnings
Broadcom (AVGO) is approaching a buy point as it prepares to report its fiscal second-quarter results on June 5. Analysts project adjusted earnings of $1.57 per share on revenue of $14.96 billion, representing year-over-year increases of 43% and 20%, respectively.
Key Facts
Current Price: Approximately $230.63
Buy Point: 251.88; potential handle forming with a lower entry at 235.28
Market Share: Holds 70–80% of the server ASIC market for AI data centers
Clients: Supplies custom AI chips to Meta, Google, OpenAI, and Apple
Industry Ranking: Ranks first in IBD’s fabless semiconductor group
IBD Composite Rating: 99
IBD Lists: Featured on Leaderboard, Big Cap 20, and Tech Leaders
What Traders Can Pick Up
AI Infrastructure Demand: Broadcom's leadership in AI-specific chips positions it to benefit from the expanding AI data center market.
Technical Setup: The formation of a handle suggests a potential lower-risk entry point at 235.28.
Institutional Interest: Inclusion in multiple IBD lists indicates strong institutional support and stock performance.
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.