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Jerremy Newsome sits down on the Desire To Trade podcast to talk trading that actually fits real life—family, travel, and consistent execution from an RV across the U.S. He’s a high-energy equities trader and educator who first built notoriety trading a single stock (Apple) day in, day out, and today leans heavily on Tesla for its volume and range. This conversation matters because Jerremy keeps strategy simple, reframes “the market” with hard math, and shows how prioritizing health and time unlocks better decisions at the screen.
You’ll learn the core of Jerremy’s approach: pick one instrument with volume and volatility, define the trend on a higher timeframe with a fast-moving average, and use a simple entry like the first bullish candle closing below (for shorts) or first bearish candle closing above (for longs), then target ~1.2R and move on. He’ll also walk you through the mindset math—billions flowing through single names in minutes—so you stop playing small, plus practical routines for health, family communication, and scaling by buying assets outside your trading account. Expect a beginner-friendly blueprint that trims the fluff and focuses on habits, rules, and risks that you can use immediately.
Jerremy Newsome Playbook & Strategy: How He Actually Trades
Core Philosophy: Keep It Simple, Repeatable, and Fast
Jerremy Newsome builds an edge by trading a small set of liquid names the same way every day. The goal is speed, clarity, and consistency—so decisions become muscle memory rather than guesswork. Here’s how that philosophy turns into rules you can actually follow.
- Trade 1–3 hyper-liquid stocks (e.g., AAPL, TSLA) until you know them cold—no rotation until you’ve logged 100+ reps on one ticker.
- Define your day in advance: “trend or chop?” based on a higher-timeframe 10/20 EMA slope and price location relative to VWAP.
- Eliminate prediction language; write a plan in verbs: “if/then” statements only.
- Focus on one setup per session; pass everything else to preserve decision bandwidth.
- End the day green in R, not dollars; compounding consistency > single big win.
Instruments & Timeframes: Liquidity First, Context Second
He prioritizes names with tight spreads, deep order books, and clean intraday trends. Timeframes stack top-down: get the bias on the higher chart, execute on the faster one. These rules keep you aligned with the dominant flow.
- Universe: 1–3 tickers with >20M avg daily volume and penny-tight spreads.
- Higher timeframe: 30-min/1-hr for trend and levels; intraday execution: 1- to 5-min.
- If the 1-hr 10/20 EMA both slope up and price holds above VWAP, only take longs; inverse for shorts.
- No trades during the first 1–3 minutes; let opening volatility print the day’s first clue.
- Skip low-volume lunch chop; resume if ATR and volume normalize after 1:30 pm ET.
Setup #1: VWAP Trend Continuation
This is the bread-and-butter intraday idea: join the primary move after a small pullback to VWAP. Simple, repeatable, and measurable.
- Condition: 1-hr uptrend (10/20 EMA up); price above VWAP; rising intraday volume.
- Trigger (long): first 1- or 2-minute bullish candle that closes above VWAP after a dip that didn’t hold below by more than 0.25% of price.
- Stop: below VWAP by 0.35–0.50% or below the trigger candle’s low—whichever is tighter.
- Target: scale 50% at +1.2R, move stop to breakeven; hold remainder to +2–3R or a close back under the 10-EMA.
- Invalidation: two consecutive closes back under VWAP or a 1-hr EMA flattening/rolling over.
Setup #2: Opening Drive Pullback (“ODP”)
When a name explodes off the open, wait for the first clean pullback to the 10-EMA on the 1- or 2-minute chart. This captures continuation without chasing the initial spike.
- Condition: first 10–15 minutes show strong impulse with expanding volume and range.
- Trigger (long): bullish reversal candle that holds the 10-EMA and takes out prior micro-high.
- Stop: under the pullback low or 0.4%—whichever is tighter.
- Target: partial at +1.5R; trail the rest with a 10-EMA close.
- No trade if the pullback slices the 20-EMA and volume dries up—momentum likely fading.
Risk & Position Sizing: Fixed R, Daily Cap, Walk Away
Risk is set in R, not dollars. That single choice prevents spiral decisions and keeps you scalable. Jerremy’s style is to protect the week so you can play the month.
- Risk a fixed 0.25R–0.5R per trade until you’ve logged 100+ trades at a win-rate >50%.
- Daily risk cap: 1.5R–2R max draw; stop trading for the day once hit—no exceptions.
- The first two trades are half-risk unless the higher-timeframe trend is aligned and the pre-market plan validated.
- Never widen stops; only trail tighter based on structure (VWAP/10-EMA/structure low).
- Size = (R in $) / (entry – stop). Round down shares to account for slippage.
Exits & Trade Management: Mechanical First, Discretion Second
Exits decide your P&L distribution. Mechanize the first scale and stop movement; leave minimal discretion for the late game.
- Scale 1 at +1.2R to pay for risk and reduce emotional load.
- Move stop to entry after Scale 1; if price stalls at intraday resistance, take another 25%.
- Trail remaining with 10-EMA on execution timeframe; switch to VWAP if trend gets parabolic.
- Time-based exit rule: if not +0.7R within 15 minutes, reduce risk by half; if flat after 30 minutes, exit.
- End-of-day rule: flatten before the final 5 minutes unless explicitly planned swing with higher-timeframe confirmation.
Pre-Market Routine: Prep Creates Patience
He treats prep like an athlete’s warm-up—short, consistent, focused on what matters. This sets your bias and prevents FOMO once the bell rings.
- Identify A-ticker (primary) and B-ticker (backup) by premarket range and volume.
- Mark the prior day’s high/low, overnight high/low, premarket high/low, and yesterday’s VWAP.
- Write one page: scenario A (trend), scenario B (range), invalidation for both.
- Define the first two trade ideas before the open with exact entry, stop, and targets.
- Minimum three deep breaths before placing the day’s first order; no hotkeys until the plan is on screen.
Post-Market Review: Turn Reps Into Edge
A short, structured review compounds faster than adding indicators. Save screenshots and grade yourself on process, not just P&L.
- Screenshot: premarket plan, actual entries/exits with EMAs/VWAP/levels.
- Tag each trade by setup (VWAP-TC, ODP, etc.) and outcome in R; log slippage.
- Grade: A/B/C on (1) followed plan, (2) respected stops, (3) executed triggers cleanly.
- If two C-grades in a row, the next session begins at half-risk until two A/B grades.
- Archive a weekly “top 3 mistakes” and one rule you’ll tighten next week.
Psychology & Energy Management: Your Body Trades Too
He emphasizes that energy and mood bleed into decision quality. Control the inputs, and your outputs stabilize.
- Sleep 7+ hours; no new positions if sleep <5.5 hours.
- Hydrate and eat light pre-open; avoid sugar spikes before first trade.
- If you break a rule, immediate penalty: step away for 15 minutes and reduce the next trade to half-risk.
- Two losing trades in a row? Mandatory 10-minute walk; reset breathing before considering a third.
- End each session with three wins you controlled (process) regardless of P&L.
Swing Overlay: From Intraday Skill to Multi-Day Holds
He’ll occasionally convert intraday reads into swing positions when higher-timeframe structure supports it. Same simplicity, just a wider room.
- Only swing when the daily trend and 1-hr trend align; price above rising daily 20-EMA for longs (below for shorts).
- Enter on an intraday pullback to VWAP that respects the daily trend; confirm with higher-timeframe volume.
- Risk 0.5–0.75R per swing; initial stop under daily swing low/high.
- Take the first scale at daily ATR(14) × 0.75; trail the remainder with the daily 10-EMA close.
- No earnings swings unless defined-risk via options.
Options for Defined Risk: Simple Calls/Puts, Not Complexity
When volatility or event risk is elevated, he’ll use straight calls/puts to keep the downside capped while preserving directional exposure.
- Use at-the-money or slightly in-the-money options with 7–21 DTE for momentum plays.
- Position size so max premium at risk = your normal R.
- Take profits at 30–50% gain or when stock hits +1.5R equivalent; roll only if trend and volume accelerate.
- Never hold 0DTE through lunch; theta and decay are the enemy outside momentum bursts.
- Avoid multi-leg complexity intraday; speed > cleverness.
News & Event Risk: Respect the Calendar
Fast names exaggerate around catalysts. Plan them, trade them intentionally, or stand down.
- No new positions 2 minutes before major data (CPI, FOMC minutes, Fed presser); wait 2–5 minutes after the print.
- Earnings: day-trade only with hard stops and half-risk; no overnight unless defined via options.
- If a headline spikes against you and hits stop, flatten instantly; do not re-enter for at least 10 minutes.
- During halts/gaps, cancel resting orders; reassess once trading resumes and VWAP recalculates.
- Tighten targets during event windows; take singles, not home runs.
Account Growth & Withdrawal Rules: Make It Real
Turning P&L into real money builds confidence and discipline. Structure your withdrawals so you don’t give back emotional capital.
- Weekly skim: withdraw 10–20% of net profits once the account is up >5R on the week.
- If you finish the week down >2R, trade next Monday at half-risk regardless of setup quality.
- Maintain a minimum “operating float” equal to 40–60R; anything above is withdrawable or earmarked for investments.
- Increase per-trade R only after three consecutive green weeks and clean process grades.
- If you break the max daily loss once, no raise in R for two more review cycles.
The One-Page Daily Checklist
A tight checklist keeps your session consistent even when markets get weird. Print it or keep it pinned next to your DOM.
- Bias set (trend vs. range), A/B scenarios written, levels marked.
- Ticker(s) chosen; first two trade plans detailed (entry, stop, target).
- Risk set to fixed R; daily loss cap visible; breaks scheduled.
- First 3 minutes: observe only; no trades.
- Review alarm set for 12:00 pm and 3:45 pm; EOD flatten unless planned swing.
Master fixed-R risk sizing and daily loss caps to protect capital
Jerremy Newsome builds consistency by thinking in R, not dollars, so every trade risks the same predefined slice of his account. That fixed-R framework turns randomness into a repeatable game: position size expands or contracts to fit the stop, but the risk stays constant. He then layers a hard daily loss cap—once that threshold is hit, the session ends—protecting the week and the mindset.
This approach removes the urge to “make it back” and keeps Jerremy executing the plan instead of negotiating with it. Fixed-R also clarifies performance: whether the ticker is slow or blazing, results are measured in risk units, not emotions. The combination of fixed-R and a daily cap forces quality filters, trims revenge trades, and compounds small edges over time. It’s how Jerremy Newsome preserves capital on bad days so he’s funded and focused for the good ones.
Trade one hyper-liquid ticker; stack timeframes, align with VWAP trend.
Jerremy Newsome keeps his universe tiny on purpose—one hyper-liquid name with tight spreads and predictable rhythm. He stacks a higher timeframe for bias and a faster timeframe for entry, so he’s always trading with context, not guesses. If the hourly EMAs slope up and price holds above VWAP, he’s a buyer, and if they roll over with price below VWAP, he’s a seller.
This narrow focus lets Jerremy learn every quirk of the ticker and react faster when conditions change. The VWAP acts as his intraday “gravity,” filtering pullbacks from reversals while the stacked timeframes keep him out of chop. One instrument, one plan, and alignment with VWAP gives him clean reads and fewer mistakes, which is exactly why Jerremy Newsome repeats it day after day.
Use opening-drive pullbacks and simple triggers; scale partials at 1.2R
The opening minutes set the tone, and Jerremy Newsome waits for that first strong impulse before acting. When momentum erupts, he lets price breathe back to the 10-EMA or VWAP, then looks for a clean reversal candle that takes out a micro-high for the trigger. No complex patterns—just a simple rule that’s fast to spot and easy to repeat.
Once in, Jerremy manages risk mechanically and gets paid quickly. He takes a partial at +1.2R to reduce pressure, moves the stop to breakeven, and lets the rest ride with an EMA or VWAP trail. If the pullback cuts too deep or volume dies, he stands down, because the best opening-drive trades pop soon or they’re wrong. This keeps Jerremy Newsome focused on A+ continuation and avoids the trap of chasing every spike.
Choose defined risk when volatility spikes; avoid complex options intraday
When markets go turbo, Jerremy Newsome flips to defined risk so surprises can’t nuke the day. Instead of widening stops on stock, he’ll buy straightforward calls or puts with enough time to survive noise, letting the premium be the max loss. He keeps strikes near the money, because deep OTM is just a lottery in disguise, especially when IV is jacked.
Intraday, Jerremy avoids multi-leg options puzzles that slow execution and add slippage. The plan is simple: enter on the same technical trigger, cap downside with the option, and take profits quickly when the move pays. No holding zero-DTE through lunch, no “one more roll” after the edge fades. By staying defined and simple, Jerremy Newsome keeps his head clear and his account intact when volatility tries to shake him out.
Win with process: premarket plan, mechanical exits, disciplined reviews every session.
Jerremy Newsome treats trading like a sport: warm up, execute the playbook, then review the tape. He writes a quick premarket plan with A/B scenarios, exact levels, and the first two trade ideas so he’s reacting to rules, not impulses. During the session, he follows mechanical exits—first scale, stop to breakeven, trail by EMA—so emotions don’t rewrite the script.
After the bell, Jerremy captures screenshots and grades each trade on whether he followed the process, not just the P&L. Two sloppy grades in a row, and he cuts risk next session, which forces him back to fundamentals. This loop—plan, execute, review—keeps Jerremy Newsome improving even on red days and makes green days more repeatable.
In this interview, Jerremy Newsome strips trading back to what actually moves the needle: pick one hyper-liquid name, learn its rhythm, and let volume and volatility do the heavy lifting. He explains how focusing on a single stock for long stretches (first Apple, now often Tesla) simplifies decisions and compounds skill, while the “two V’s”—volume and volatility—determine whether a ticker earns a place on your screen. He reframes the opportunity set with plain math—capture a modest daily move with a sensible size, repeat it through the year—and reminds you the market is vast and impersonal, which frees you from conspiracy thinking and keeps attention on execution.
On mechanics, Jerremy’s rule set is deliberately minimal: establish higher-timeframe bias with a simple moving average, trade only in that direction, then execute on a faster chart using a clear trigger—like the first bullish candle that closes below for shorts or first bearish candle that closes above for longs—placing the stop beyond structure and aiming for about 1.2R on the initial target. The emphasis is consistency over complexity: fixed risk per trade, predefined daily loss limits, and a repeatable checklist that turns entries and exits into a process. And above the charts, he pushes a deeper lesson: the markets mirror your internal state, so the real work is often studying your own beliefs and fears, not hunting for yet another indicator.
