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Jerremy Newsome sits down for a high-energy conversation about trading that actually pays the bills. Known for Real Life Trading and a relentlessly practical money mindset, Jerremy lays out how he day trades, how he swings, and why generosity and discipline are part of his edge. He’s a Nashville-based trader who loves volatility, trades multiple timeframes, and has clear rules that keep him focused when markets move fast.
In this piece, you’ll learn Jerremy’s simple, repeatable day-trading blueprint (gap above/below yesterday’s range, first 20 minutes only, three-minute bear candle closing above the 10-EMA for longs, enter above that candle and stop below it), plus how he applies the same structure to swing trades. You’ll also see his “pay yourself, give, then buy assets” money flow, why time management and multiple income streams matter, and how deliberate practice turns a plan into profits. If you want a beginner-friendly breakdown of rules you can test tomorrow—and a mindset that makes those rules stick—this guide is for you.
Jerremy Newsome Playbook & Strategy: How He Actually Trades
Pre-Market Game Plan: what to scan and why it matters
Before the bell, Jerremy sets the table so the open isn’t a surprise. The goal is to find clean, liquid stocks with a catalyst and obvious levels so decisions are fast and unemotional once volume hits.
- Scan for liquid tickers (≥ 1M average daily volume; premarket volume ≥ 200k).
- Filter for gaps of ≥ 2% with a clear news or earnings catalyst.
- Mark yesterday’s high/low, premarket high/low, and the nearest daily supply/demand.
- Draw the opening gap zone and tag the nearest whole/half-dollar levels.
- Decide bias before the open: “gap-and-go,” “gap-and-fade,” or “inside/no-trade.”
The A+ Day-Trade Setup: gap, momentum, and the first 20–30 minutes
Jerremy thrives on structured aggression early. He wants a gap with confirmation and a simple trigger that defines risk in seconds, not minutes.
- Only trade the open if there’s a gap plus volume expansion on the first two candles.
- If bullish bias: look for an early pullback that holds above the 10-EMA on the 1–3 min.
- If bearish bias: mirror the logic—rallies failing under the 10-EMA with expanding sell volume.
- Skip choppy opens that sit between yesterday’s high/low with no range extension by minute 10.
- Maximum two attempts on the same ticker during the opening sequence.
Entry Triggers: clear signals you can execute fast
The entry rules remove hesitation. Jerremy prefers a candle+EMA structure so he can press the button with confidence and a pre-defined stop.
- Long: wait for a red (bear) candle to form above the 10-EMA, then buy a break above that candle’s high; stop goes a tick below its low.
- Short: wait for a green (bull) candle to form below the 10-EMA, then sell a break below that candle’s low; stop a tick above its high.
- Require alignment on 1–3 min charts; if they disagree, pass until they sync.
- No market orders; use stop entries at the trigger to avoid chasing.
- If the entry doesn’t trigger within 5–10 minutes, cancel and reassess.
Risk, Sizing, and Stops: protect the account first
Jerremy thinks in R (risk units), not dollars. The objective is to make each trade small enough to be repeatable and large enough to matter.
- Risk per trade: 0.25R–1.0R depending on quality; never exceed daily loss cap of 2–3R.
- Position size = (Account × %R) ÷ (Entry − Stop); round down to the nearest 5–10 shares/contracts.
- Hard stop always at structure (the signal candle); never move it wider.
- If slippage exceeds 0.5R at fill, reduce size or skip the next attempt on that ticker.
- After −2R on the day, pause for 20 minutes; after −3R, stop for the session.
Trade Management: partials, trails, and when to just exit
Wins are engineered with planned exits. Jerremy wants one rule set that works in fast conditions and doesn’t depend on prediction.
- Take first partial at +1R; move stop to breakeven after the partial fills.
- Trail the rest under/over the 10-EMA on the execution timeframe.
- If price hits a premarked daily level (yesterday’s high/low or premarket extremes), take another partial.
- Flatten the entire position if a full reversal candle closes beyond the 10-EMA against you.
- If unrealized drawdown returns to 0R after being ≥ +1.5R, exit—don’t let winners turn into mediocrity.
Time-of-Day Rules: when to press and when to chill
Not all minutes are created equal. Jerremy concentrates risk when the edge is biggest and preserves energy when it isn’t.
- Primary window: first 20–30 minutes after the open; secondary push at 10:00–10:30.
- Avoid initiating new positions over the lunch lull (roughly 11:30–1:30 local market time).
- Final window for day trades ends 30 minutes before the close unless managing a runner.
- If there’s no A+ setup by minute 30, reduce size to 0.25–0.5R or call it a no-trade day.
- Never add to losers; only add (¼–½ size) if trend and 10-EMA trail both hold.
Swing Trading Framework: same structure, slower tempo
Jerremy applies the same logic on higher timeframes. The edge comes from clean levels, simple signals, and mechanical exits.
- Scan daily/weekly charts for clean trends and tight consolidations near the 10 or 20-EMA.
- Enter on daily pullback candles that respect the 10–20 EMA and break the prior day’s high/low.
- Stop goes below/above the signal candle; target at 2R first, then trail under/over the 10-EMA daily.
- Size smaller than day trades (0.25–0.5R) and diversify by sector/industry.
- Hold only if the daily trend structure (higher highs/higher lows or lower lows/lower highs) remains intact.
Options Overlay (if using options): defined risk, clean triggers
Options let Jerremy cap downside while expressing directional views. The priority is clarity and time decay management.
- For directional longs: buy near-term ITM/ATM calls when the stock trigger fires; sell half at +50–70% to reduce cost basis.
- For directional shorts: buy puts on breakdown triggers; reduce at +50–70%, trail rest using stock’s 10-EMA.
- Avoid selling naked premiums on news-driven gaps; use defined-risk spreads if selling.
- Never hold weekly options through major earnings unless the plan was premised on that risk.
Earnings and Catalyst Plays: volatility with guardrails
Catalysts can drive the cleanest moves—but they also punish sloppiness. Jerremy treats them as “edge with a seatbelt.”
- Trade only if spreads are tight and the premarket structure is clear.
- Use half size (≤ 0.5R) on the open; widen partials—first at +1.5R due to volatility.
- If the first two candles are opposing wicks with equal range, skip the ticker for the session.
- For post-earnings trends, wait for the first pullback to the 10-EMA on the 5–15 min before joining.
Journaling and Metrics: turn trades into data
Consistency is built after the close. Jerremy tracks the few stats that truly drive improvement.
- Log every trade: setup name, R risked, R made, time of day, and whether the 10-EMA structure held.
- Weekly review: top/worst tickers, win rate by setup, average R per setup, and drawdown depth.
- Cut any setup that’s < +0.3R expectancy over 30 samples; double down on the ones > +0.6R.
- Screenshot entry/exit with levels; archive in folders by setup for pattern recognition.
Money Flow & Withdrawals: pay yourself on purpose
Trading feeds a broader wealth loop. Jerremy keeps the cash flow intentional so the account isn’t the only metric that grows.
- At week’s end: withdraw a fixed % of net profits (e.g., 10–30%) to a “life” account.
- Allocate a set % to giving and a set % to long-term assets before discretionary spending.
- If the month is negative, pause withdrawals and reduce per-trade R until back to equity highs.
- Set quarterly caps on total risk deployed to avoid lifestyle creep in position sizing.
Mindset You Can Use Tomorrow: simple rules, strong habits
The edge is made of small disciplines you can repeat. Jerremy keeps the game winnable by making decisions and honoring stops.
- Pre-commit to your first loss being your best loss; hit the stop and move on.
- Speak your plan out loud before entry: “trigger, stop, first target, trail.”
- If you break a rule, size down to 0.25R for the next three trades.
- End the day when you’re either +3R or −3R—protect the process, not the ego.
Size Risk in R, Cap Daily Losses, Keep Positioning Consistent
Jerremy Newsome treats every trade as a fixed “R,” so results are measured in repeatable units rather than emotional dollars. He picks a small, durable risk per trade—often 0.25R to 1.0R—then caps the day at a strict max loss so one bad morning can’t wreck the week. That structure forces consistency: the position size is calculated from entry minus stop, not from confidence or hunches. If the setup is A+, he stays near the top of his range; if it’s B-quality, he scales down but never widens stops. The goal isn’t to be a hero; it’s to make the same high-quality bet over and over with identical risk math.
Newsome also locks in survival with a hard daily loss limit that ends the session automatically, keeping tilt out of the account. A typical workflow: choose R, compute size from the stop distance, place the stop immediately, and accept the outcome without “saving” a trade. This makes performance comparable across tickers and timeframes and gives clean data for review. When equity pulls back, he trims R until he’s back at highs, then scales it up responsibly. The result is a smoother equity curve built on discipline first, profits second.
Trade the Gap With Rules: Trigger, Stop, Trail, Partial
Jerremy Newsome treats opening gaps like a play he’s rehearsed a thousand times. He starts with bias: is the gap aligned with the higher-timeframe trend and supported by volume in the first two candles? If yes, he waits for a clean pullback that respects the 10-EMA on the 1–3 minute, then uses a simple candle trigger to enter. For longs, that’s a red candle holding above the 10-EMA, buying a break of its high with the stop just below its low. For shorts, it’s the mirror image: a green candle below the 10-EMA, selling the break of its low with the stop just above its high.
From there, Newsome manages the trade mechanically to avoid second-guessing. First partial comes quickly at roughly +1R to de-risk, then the stop moves to breakeven so the rest can breathe. He trails the runner with the 10-EMA on the execution timeframe and trims again at premarked levels like yesterday’s high/low or the premarket extremes. If the open is choppy—price trapped between yesterday’s levels by minute ten—he simply passes or limits himself to two attempts, max. The edge isn’t prediction; it’s following the trigger, honoring the stop, trailing with structure, and letting partials pay the bills.
Use Volatility to Adjust Size, Not Emotions to Chase
Jerremy Newsome keeps his sizing tied to market velocity, so he isn’t tricked into swinging bigger just because candles look exciting. When ATR expands or the gap range balloons, he shrinks position size automatically to keep the same R intact. If volatility contracts and pullbacks are tight, he allows normal size—but never widens stops to “make it work.” The point is to let volatility change the distance to the stop, not the discipline of the risk.
In practice, Jerremy maps size to a simple yardstick: if the current ATR is roughly double his baseline, he cuts share size by about half; if it’s 50% larger, he trims size by a third. On gap days with outsized wicks, he will also take profits earlier (around +1R) and move to breakeven to neutralize noise. If spreads and slippage expand beyond his thresholds, he either switches to options with defined risk or skips the ticker entirely. Volatility becomes a dial on exposure—not a green light to chase momentum.
Diversify by Strategy, Timeframe, and Duration to Smooth Equity Curve
Jerremy Newsome spreads his risk across how he trades, not just what he trades. He mixes an opening-gap day-trade playbook with swing positions on daily charts, so one quiet session doesn’t stall his month. Timeframes are staggered: quick intraday R wins feed confidence, while slower daily trends compound without constant screen time. He also rotates between momentum breakouts and pullback entries to avoid being hostage to one market regime. The effect is a steadier equity curve built from multiple small, independent edges.
Newsome diversifies by duration, too—same ticker, different holding periods and objectives. A day-trade might target +1R to +2R with a tight 10-EMA trail, while a swing position in the same name hunts 2R–4R using daily structure. If volatility spikes, he scales down the fast strategy but lets the swing breathe; if ranges compress, he leans more on intraday precision and trims swing risk. This way, no single setup or timeframe can dominate outcomes, and his process stays profitable across bull runs, chop, and pullbacks.
Choose Defined Risk When Uncertain; Avoid Prediction, Execute Mechanics
When conditions are messy, Jerremy Newsome defaults to defined risk so indecision can’t snowball into a big loss. Rather than predicting the next candle, he preloads the trigger, the stop, and the take-profit and lets the rules fire. If spreads are wide or slippage is creeping up, he reduces size or switches to defined-risk structures so the worst case is known upfront. The goal is simple: remove “what if” debates at the moment of action and keep the account insulated from surprise.
Jerremy also separates belief from behavior—he might like the story, but he still waits for the signal. No anticipatory entries; he uses stop orders at the level, cancels if it doesn’t trigger, and moves on. Once in, he follows the mechanical trail—partials at preplanned R multiples, stops to breakeven, then a moving exit using a short EMA or a structure break. By prioritizing defined risk and execution over prediction, he stacks small statistical edges without letting a single opinion derail the day.
Jerremy Newsome’s core lesson is radical simplicity: trade only what’s clear, define risk in advance, and let structure—not prediction—drive decisions. Hisopening playbookk is explicit: he’ll engage in the first 20 minutes only when the stock opens beyond yesterday’s range and a three-minute bear candle closes above the 10-EMA on both extended and regular sessions; the long trigger is a break of that candle’s high with the stop just below its low. It’s a crisp ruleset that compresses hesitation into a single mechanical action.
He applies the same mechanics to swing trades: wait for a bear candle to close above the 10-EMA, enter on the break, and keep the stop under the signal—accepting that strings of losses happen and discipline beats tinkering. The structure stays the same whether it’s a 3-minute, 5-minute, or daily chart; the timeframe changes, not the logic. That consistency creates sample size, cleaner data, and the emotional resilience to keep executing after a couple of routine losses.
Beyond entries, Jerremy stresses life design: pay yourself first, give next, and convert cash flow into assets so trading sits inside a bigger prosperity system. That money-flow habit pulls pressure off any single session and keeps him from forcing trades. It also reinforces the deeper mindset: there will always be more setups, and stepping away actually strengthens performance. You don’t need to trade every day to make money every month—catch the clean move, then go live your life.
Put together, Jerremy Newsome’s playbook is a blueprint you can run tomorrow: predefine R, wait for your candle+EMA signal, execute the trigger/stop without debate, take partials, and let the rest trail. Pair that with intentional cashflow rules and a permission slip to miss trades—and you get a process that compounds both equity and energy over time.
