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:
✅ Why cutting losses is the single most important rule for trading survival.
✅ How legends like O’Neil, Minervini, and Livermore enforce strict exit rules.
✅ A simple mental shift to make selling losing trades automatic—not emotional.
Every trader dreams of the big winning trade.
But the real key to wealth in trading is simple: Don’t let losers get out of control.
📖 William O’Neil drilled it into his students:
“The whole secret to winning big in the stock market is to lose the least amount possible when you are wrong.”
You’re going to have losing trades.
Your job? Keep them small so that your winners have a chance to carry your account upward.
🔥 Why Cutting Losses Quickly Saves Your Portfolio
✅ 1. Small Losses Are Manageable—Big Losses Compound
A 7% loss requires only a small gain to recover.
A 50% loss? You need a 100% gain to get even.
Math punishes slow cutters.
✅ 2. Big Losses Destroy Confidence
Huge drawdowns paralyze future decision-making.
Fear leads to missed opportunities when the market turns.
✅ 3. Cutting Losses Is a Hallmark of Every Market Wizard
Pros accept losses as part of the game—not personal failure.
They move on without hesitation.
📖 Mark Minervini said:
“The best traders know how to lose. They lose small, they lose fast, and they don’t lose their minds.”
✅ 4. Small Losses Free You to Play the Next Hand
Trading is like poker: fold the weak hand early, wait for strength.
📉 Common Mistakes Traders Make with Losing Trades
❌ Hoping and holding as losses grow
❌ Moving stop-losses lower to “give it room”
❌ Averaging down without clear re-entry strategy
❌ Making emotional decisions instead of systematic ones
📖 Jesse Livermore warned:
“The mistake many make is thinking they must recover losses. They cling to hope instead of accepting defeat.”
📌 Trader’s Checklist: Mastering the Cut-Loss Rule
✅ Have I set a pre-planned stop-loss before entering the trade?
✅ Will I exit immediately when the stop is hit—without hesitation?
✅ Am I treating losses as a cost of doing business, not a personal failure?
✅ Do I understand that protecting capital matters more than protecting pride?
🎯 Action Step: Practice Your Cut-Loss Discipline
✅ Choose 1 open trade that isn’t working.
✅ Set a clear stop-loss now—at a technical level, not based on emotion.
✅ If the stop triggers, exit immediately—no hesitation, no regret.
✅ Bonus: Review your past 5 losing trades.
Did you cut them fast?
What patterns do you notice?
Commit to fixing the #1 mistake you spot.
📊 Remember: Small, consistent exits preserve your psychological and financial capital.
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
BULLS CHARGE AHEAD AS TECH STOCKS FLEX 💥
What a week! The bulls are back — and they’re not playing around. Stocks soared higher, led by big moves in tech. The Nasdaq popped 1.3% Friday alone, but the real headline? A massive 6.7% gain for the week. That’s not just strength... that’s momentum.
But don’t get too comfy — next week’s packed with heavyweight events. We’ve got earnings from the Magnificent Seven (hello, Apple, Amazon, Microsoft), a fresh inflation report, and a close look at the job market. Translation? More fireworks could be on the way.
Get the full story + what to watch next → Read the full recap on IBD
Stock Spotlight
📈 Stock of the Week: SAP SE (SAP)
If you're looking for a high-quality tech stock quietly dominating the enterprise software world, SAP SE deserves your attention. As of 2024, SAP is Europe’s most valuable company, boasting a market cap of $342.4 billion. The German software giant is in the midst of a powerful transformation — shifting from traditional software licenses to cloud-based solutions, and the results are hard to ignore.
🚀 Why SAP Is Worth Watching:
Cloud Growth: SAP’s cloud revenue surged 25% year-over-year, with a backlog hitting €63.3B ($68.5B) — signaling strong future demand.
AI Integration: Tapping into what CEO Christian Klein calls the "richest business dataset of all tech companies", SAP is embedding AI across its platforms to boost productivity and insights for clients.
Strategic Alliances: Partnerships with Microsoft, IBM, and HPE are enhancing SAP’s hybrid cloud capabilities and widening its moat.
Wall Street Confidence: Bank of America ranks SAP as their top large-cap software pick for 2025, citing cloud migration and AI upselling as key catalysts.
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.