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 to sell your winners systematically—without panic or greed.
✅ What O’Neil, Minervini, and Livermore used to know when to lock in gains.
✅ Why "sell rules" are just as critical as your "buy rules."
Buying is exciting. Selling is emotional.
And that’s why most traders mess it up.
They sell too early and miss huge gains—or they hold too long and give everything back.
Top traders follow clear sell rules, so they exit winners smartly—not emotionally.
📖 William O’Neil taught:
“The object of investing is to increase your wealth, not to be right.
You need to learn to sell when you have a good profit—not when it’s convenient.”
🎯 3 Smart Ways to Sell Winning Stocks
✅ 1. The 20–25% Profit Rule
O’Neil’s core rule: After a proper breakout, sell part or all of a position if it gains 20–25% from the correct pivot point.
This prevents you from getting greedy—or watching a gain vanish in a correction.
In strong, exceptional markets, you can hold longer—but always lock some profits at logical milestones.
📖 Example:
Buy at $100 → Consider trimming near $120–$125.
✅ 2. 10-Week Moving Average Hold Rule
Strong stocks often ride the 10-week moving average.
If the stock pulls back to the 10-week line and rebounds on strong volume, stay in.
If it breaks below the 10-week line on heavy volume, that’s a sell signal.
✅ 3. Climactic Runs and Parabolic Moves
When a stock goes vertical—massive price gains over a few days—you’re often near the top.
Sell into strength before the inevitable sharp pullback.
📖 Mark Minervini explained:
“You must sell when the market is still letting you out profitably—not after everyone else rushes for the exits.”
📉 Common Mistakes in Selling Winners
❌ Selling too early from fear of giving back gains.
❌ Selling too late after a major technical break.
❌ Ignoring volume signals during pullbacks.
❌ Falling in love with a stock and refusing to sell.
📖 Jesse Livermore warned:
“It is not good to be too curious about all the reasons behind price movements.
When prices break support levels, sell without hesitation.”
📌 Trader’s Checklist: Selling Like a Pro
✅ Has the stock gained 20–25% from a correct base?
✅ Is it respecting the 10-week moving average on pullbacks?
✅ Is volume confirming strength—or showing major selling?
✅ Am I prepared to sell into climactic runs instead of chasing more?
✅ Have I pre-written my selling plan before emotions take over?
🎯 Action Step: Prepare Your Sell Strategy
✅ Pick 3 stocks you’re currently holding.
✅ For each one, answer:
What is my first target? (e.g., 20–25% profit)
Where is my trailing stop? (10-week MA, 50-day MA)
Under what conditions will I sell immediately?
✅ Make sure your decisions are pre-planned—not reactionary.
Train Your Eyes On This Pattern
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
DOW CHARGES AHEAD WHILE SPOTIFY HITS A SOUR NOTE
The bulls ran strong Tuesday with the Dow Jones leading the charge, climbing 0.7% for a six-day winning streak. The S&P 500 pushed past the 5,500 level and the Nasdaq followed—barely. Meanwhile, Spotify took a beating, down over 10% after missing earnings. Ouch. Amazon also took heat in a political dust-up with the White House, ahead of its earnings report Thursday.
Winners of the day? Honeywell and Sherwin-Williams with big gains after solid Q1 results. Surprise mover? Hims & Hers soared 19% thanks to a new weight-loss drug partnership. But not everyone had a good day—Brinker and Brown & Brown both tanked, and GM dropped after saying tariffs could mess with their forecast. This market’s hot... but not everyone’s invited to the party.
Stock Spotlight
📈 Stock Spotlight: Charles Schwab (SCHW)
Looking for a solid financial stock that’s more than just a brokerage? Say hello to Charles Schwab (SCHW) — one of the most trusted names in financial services. Known for its low-cost investing solutions, Schwab plays a massive role behind the scenes of everyday investing. From managing retirement accounts to powering trades for investors and institutions, Schwab is at the heart of the market.
🔍 Why SCHW Deserves Your Attention:
Massive Client Base: Over $8 trillion in client assets — that’s a lot of financial firepower.
Strong Fundamentals: Recent earnings show improving margins and cost efficiencies, even in a higher interest rate environment.
Resilient Business Model: Schwab benefits when rates rise — they earn more from idle client cash in sweep accounts.
Analyst Upgrades: Several analysts have raised their outlook on SCHW based on earnings surprises and improving client growth.
This stock is a great case study in how traditional financial firms are evolving in a digital-first world. Tracking how SCHW performs can sharpen your macro awareness — especially when it comes to interest rates, tech integration in finance, and investor sentiment.
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.