#121 Jason Shapiro: The Ultimate Contrarian Trader is Back
Dec 19, 2023
01:21:05
auto_awesome Snipd AI
Jason Shapiro, renowned as 'the contrarian' in Jack Schwager's 'Unknown Market Wizards,' shares insights into his distinctive trading philosophy, embracing discomfort, learning from setbacks, and adopting a contrarian stance. They discuss the challenges and approaches to contrarian trading, trading strategies, risk management, personal responsibility, fading the market, and the concept of 'the biggest fake in the world.'
Read more
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Prioritize making money over being right in trading by finding high-probability winning trades and being willing to be wrong at times.
Avoid following consensus and popular opinions in trading by questioning and fading the opinions of others, taking advantage of potential market inefficiencies caused by the herd mentality.
Have a well-defined trading process, conduct thorough research, and actively seek fading opportunities to improve trading outcomes and profits.
Deep dives
The Importance of Making Money vs. Being Right
The podcast episode explores the idea of prioritizing making money over being right in trading. The speaker emphasizes that many traders have a strong desire to be right and make accurate predictions, but this mindset can be detrimental to their success. Instead, the speaker suggests focusing on making money by finding high-probability winning trades and being willing to be wrong at times. They highlight the importance of recognizing and learning from mistakes, as well as embracing the concept of being wrong and still making money.
The Dangers of Following Consensus and Popular Opinions
The podcast episode touches on the dangers of following consensus and popular opinions in trading. The speaker emphasizes the need to question and fade the opinions of others, especially when there is a strong consensus in the market. They suggest that being contrarian in trading can often lead to success, as it allows traders to take advantage of potential market inefficiencies caused by the herd mentality. The speaker advises traders to pay attention to the opinions of others and use them as valuable information to make informed trading decisions.
The Role of Process and Research in Trading
The podcast episode highlights the importance of having a well-defined trading process and conducting thorough research. The speaker mentions their own process of finding traders who consistently demonstrate behavioral biases and fade their opinions. They stress the significance of understanding one's own process and where they might be wrong in order to make informed trading decisions. The speaker also discusses the value of active research and staying updated with market-related information to identify potential fading opportunities and improve trading outcomes.
The importance of letting go and not dwelling on missed trades
One of the main insights discussed in the podcast is the importance of letting go and not dwelling on missed trades. The speaker emphasizes that having a strong process is crucial, and that even though they missed out on a trade, they don't let it affect their trading. They highlight the challenge of remorse for many traders and stress the need to overcome it. The speaker mentions their upcoming book, 'Mastering the Mental Game of Trading,' which focuses on the idea of letting go as a key element of successful trading. They also highlight the significance of learning to let go in life beyond trading.
The profitability of fading well-known traders
Another key point discussed in the podcast is the profitability of fading well-known traders who consistently make wrong calls. The speaker shares specific examples of traders who are wrong most of the time but refuse to acknowledge their mistakes. They emphasize how fading these traders can be profitable, as their behavior and biases become predictable. The speaker encourages traders to develop their own strategies and not rely on others to dictate their trades. They discuss the importance of understanding the market as a discounting mechanism and caution against following popular narratives and stories instead of focusing on reality and making money.
In this compelling episode of the AlphaMind Podcast, we immerse ourselves in the captivating realm of 'contrarian trading' with the remarkable Jason Shapiro, renowned as 'the contrarian' in Jack Schwager's "Unknown Market Wizards." Shapiro's adeptness in mastering the art of contrarian trading challenges the very core of many mainstream trading ideologies.
This episode marks Jason's third appearance on the AlphaMind podcast, each visit sparking some fascinating feedback and gratitude from our listeners. Once again, Jason generously shares insights into his distinctive trading philosophy, shedding light on the nuanced approach that sets him apart in the trading landscape.
Listeners, whether novices or seasoned traders, will discover invaluable guidance from Shapiro: courageously embrace discomfort, glean wisdom from setbacks, and cultivate the bravery to adopt a contrarian stance when your analysis and process justify it. Join us as we delve into the mind of this extraordinary trader whose unconventional strategies continuously redefine the dynamics of the trading arena.
AlphaMind: Powering Performance in Global Markets AlphaMind brings powerful change, growth and development to people and businesses within global markets. Driven by a deep understanding of how markets work, and how people and businesses function within them, we partner with clients to create personal performance improvements that elevate returns across their trading activities. Go to the AlphaMind website to know more.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode