Chat With Traders

245: Jason Shapiro - The Mind of a Tape Reading Contrarian Trader

Oct 11, 2022

57:12

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Episode guests

Jason Shapiro

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Quick takeaways

Contrarian trading involves going against crowded market sentiment and looking for opportunities when speculators are excessively short or long.

Market confirmation is crucial before taking a trade, waiting for a 'new failure event' where the market rejects bearish or bullish news to ensure alignment with contrarian viewpoint.

The COT report is a key tool for contrarian trading, with Jason utilizing extreme levels of positioning among commercials and speculators to take trades based on the disparity between their positions.

Deep dives

Contrarian Trading Approach

Jason Shapiro discusses his contrarian trading approach, where he goes against crowded market sentiment and looks for opportunities when speculators are excessively short or long. He believes that when everyone is in agreement, it is a signal for contrarian trading.

When Does Money Become Dumb Money?

00:36

Is the Market Overvalued?

03:15

Is It Mean Reversion or Mean Version of Participation?

02:10

Is Return Degradation a Common Problem in Program Trading?

02:18

Introduction

2min

Chat With Traders Interview With Jason Shapiro

2min

Is What You Learned in Business School Helping You With Trading?

3min

Unknown Market Wizards - How Did It Affect Your Trading?

3min

Are You a Contrarian Trader?

2min

Is the Market a Discounting Mechanism?

2min

Are Non Financial Magazines a Good Contrarian Indicator When They Have Front Cover Articles About Stocks?

2min

Are You a Contrarian Indicator?

2min

Are You Looking to Go the Other Way?

2min

10.

Do You Use the Commitment of Traders Report?

6min

11.

Is There a Difference Between a Commercial and a Commodity Producer?

2min

12.

Do the Commercials Use Similar Levels of Leverage?

3min

13.

I Wouldn't Follow Stock Analysts

2min

14.

Is the Market Overvalued?

3min

15.

When to Put on a Trade?

3min

16.

Commodity Markets

3min

17.

The Importance of Correlation

2min

18.

Oil Versus Oil Stock Chart - Is There an Edge in There?

2min

19.

Is It Mean Reversion or Mean Version of Participation?

2min

20.

What's a Counter Trend Approach?

2min

21.

Is Return Degradation a Common Problem in Program Trading?

2min

22.

How Do You Manage Other People's Money or Just Your Own?

2min

23.

Is There Any Advice for Traders When They're Losing Money?

2min

24.

Chat With Traders - Jason

2min

Jason Shapiro has been a trader for 30 years and was interviewed in the Unknown Market Wizards book by Jack Schwager. From early on Jason was a rebel who avoided group think and sought out contrarian trading opportunities in overhyped, or deeply oversold stocks and commodities.

Blessed by early trading successes, Jason retired to a beach in Thailand in the late 90’s and traded his account full time only to experience tragedy less than a year later. The painful lessons he learned drove him to give up his opinions about markets and instead listen to what the market is saying by becoming a great market tape reader.

You’ll hear how Jason finds great trading opportunities through a combination of weekly trader reports, media commentary and news events to put on his contrarian trades.

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Chat With Traders

245: Jason Shapiro - The Mind of a Tape Reading Contrarian Trader

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Contrarian Trading Approach

Importance of Market Confirmation

Using Commitment of Traders (COT) Report

Risk Management and Exiting Trades

Counter Trend Approach and Return Degradation

When Does Money Become Dumb Money?

Is the Market Overvalued?

Is It Mean Reversion or Mean Version of Participation?

Is Return Degradation a Common Problem in Program Trading?

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

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& Export

AI-powered
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Discover
highlights

Chat With Traders

245: Jason Shapiro - The Mind of a Tape Reading Contrarian Trader

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Contrarian Trading Approach

Importance of Market Confirmation

Using Commitment of Traders (COT) Report

Risk Management and Exiting Trades

Counter Trend Approach and Return Degradation

When Does Money Become Dumb Money?

Is the Market Overvalued?

Is It Mean Reversion or Mean Version of Participation?

Is Return Degradation a Common Problem in Program Trading?

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