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)
Many traders buy stocks blindly, without understanding price movements, volume, and trends. If you don’t know how to read a stock chart, you’re trading in the dark.
“Stock charts are the footprints of money. If you learn to read them, they will tell you everything you need to know.”
“The stock market is never obvious. It is designed to fool most of the people, most of the time. But the charts never lie.”
A properly analyzed stock chart can show you exactly when to buy, sell, or avoid a stock altogether.
📊 The 3 Key Elements of Stock Charts
📌 Master These Three Charting Basics to Make Better Trades:
1️⃣ Price Action – The Most Important Factor
Stocks move in trends (Uptrend = higher highs, Downtrend = lower highs).
The best stocks break out of bases and make new highs.
Sideways price action = consolidation before a move.
📖 Example:
Tesla (TSLA) 2019-2020 – Traded sideways for months before breaking out to new highs and rising 1,900%.
2️⃣ Volume – The Fuel Behind Every Move
Rising prices on high volume = Institutional buying (Bullish).
Falling prices on high volume = Institutional selling (Bearish).
Low volume = Weak conviction (Avoid these breakouts).
“The biggest stock moves always happen on heavy volume. No volume, no conviction.”
3️⃣ Moving Averages – The Best Guide for Trends
50-Day Moving Average (SMA) – Short-term trend indicator.
200-Day Moving Average (SMA) – Long-term trend indicator.
The best stocks stay above their 50-day moving average in an uptrend.
📖 Example:
Apple (AAPL) 2004-2008 – Every dip to the 50-day moving average was a buying opportunity as the stock rose 1,580%.
“A stock above its 50-day moving average is strong. A stock below its 200-day moving average is weak. It’s that simple.”
🔍 How to Spot a Strong Stock Setup
📌 Use These Steps to Analyze Any Stock Like a Pro:
✅ Step 1: Identify the Trend
Is the stock in an uptrend, downtrend, or sideways range?
✅ Step 2: Look for Volume Confirmation
If a stock is breaking out, is volume increasing?
✅ Step 3: Check Moving Averages
Is the stock above its 50-day and 200-day moving average?
📖 Example:
Nvidia (NVDA) in 2023:
Uptrend confirmed.
Broke out on high volume.
Held above the 50-day moving average.
Stock surged 300% in one year!
📉 When to Avoid a Stock
🚨 Red Flags That a Stock is Weak:
❌ Breaks below its 50-day or 200-day moving average.
❌ Declining volume on up days, rising volume on down days.
❌ Repeated failed breakouts.
“When a stock acts weak in a strong market, get rid of it fast.”
📖 Example:
Peloton (PTON) in 2021 – Broke below the 50-day & 200-day moving average before crashing 90% in one year.
🎯 Action Step
✅ Go to TradingView or IBD Charts.
✅ Look up a stock and analyze:
Trend (Up, Down, or Sideways?)
Volume (Increasing or Decreasing?)
Moving Averages (Above or Below 50-Day & 200-Day?)
👉 Write your observations in your trading journal.
⏭️ Coming Up Next:
Tomorrow, we’ll cover O’Neil’s Cup-with-Handle Pattern—his favorite breakout setup.
🚀 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
NVIDIA'S TRADE TRIUMPH: A NEW CHAPTER WITH CHINA
Guess what? The Trump administration just did a 180 on their trade plans with Nvidia. 🎉 No more stricter restrictions on those shiny H20 AI chips heading to China. This bold move signals a fresh strategy in the ever-complicated dance of trade relations.
But what does this mean for Nvidia's stock? Are we in for a wild ride or smooth sailing ahead? There's a lot at stake here, folks! This shift is more than just a headline; it's a potential game-changer in the tech world.
Dive into the details and see how this unfolds! Read more here
TRUMP'S AUTO TARIFF BOMB: WHAT'S NEXT?
Hold onto your steering wheels! 🚗 President Trump just dropped a big one—a 25% tariff on auto imports. But the big question on everyone's mind: What's the long-term impact on the U.S. auto industry?
Is this a move to protect American jobs, or will it backfire and cost drivers more at the dealership? The stakes are high, and the road ahead is uncertain. Buckle up as we explore the twists and turns of this new policy.
STOCK MARKET SHOCKWAVES: A WILD RIDE
Stocks are on a rollercoaster, and it’s not for the faint-hearted! 📉 With major players like Apple, Nvidia, and Tesla seeing sharp declines, the Dow Jones took a nosedive after surprise inflation figures hit the headlines.
Why the sudden drop, and what’s next for these powerhouse stocks? I'm diving into the details to help you navigate the turbulence and potential opportunities in this volatile market.
Stock Spotlight
Feature Stock: BJ's Wholesale Club (BJ)
BJ's Wholesale Club is today's featured stock, and it's an excellent example of resilience in the face of market challenges, such as the recent Trump tariffs. As a member of the discount retail sector, BJ's has effectively positioned itself as a "relative winner," thanks to its minimal exposure to tariffs and its appeal to consumers seeking value amidst inflationary pressures.
Key Highlights:
Tariff Resilience: BJ's has a low-single-digit exposure to China, mitigating tariff impacts. Its focus on groceries and essentials, which make up 85% of its nonfuel sales, further buffers it from economic downturns.
Growth Trajectory: With comparable-store sales rising by 4.2% in late 2024, BJ's showcases a strong growth potential. The company is expanding aggressively, planning to open 25 to 30 new clubs over the next two years.
Value Proposition: BJ's maintains a 25% discount compared to its grocery competitors, leveraging its wholesale model for better supplier negotiations and reduced labor dependency.
Market Performance: Currently trading near all-time highs, BJ's is holding strong above its key moving averages. Its relative strength line, a measure of performance against the S&P 500, is at record highs, signaling its robust market position.
While the broader market faces volatility, BJ's stands out as a stock to watch for its strength and potential leadership in future market uptrends. For investors, building a watchlist with strong contenders like BJ's is crucial.
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.