Join hedge fund manager and trading legend Jason Shapiro, who brings over 30 years of experience to the table. He discusses the risks of buying the dip in volatile markets and emphasizes the importance of caution in investing. Jason shares personal lessons from his trading journey, highlighting common mistakes traders make. He advocates for a contrarian approach, urging listeners to reassess their strategies based on market psychology. With insights into market reactions to bad news, he underscores the need for confirmation before making crucial trading decisions.
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insights INSIGHT
Recency Bias Prolongs Bear Markets
Recency bias can prevent traders from capitulating in a bear market.
This might lead to a prolonged bear market without drastic sell-offs.
volunteer_activism ADVICE
Caution Against Buying The Dip
Avoid buying dips just because the market temporarily recovers.
Waiting for market confirmation before buying can help avoid significant losses.
Jack Schwager's 'Market Wizards' series delves into the strategies and mindsets of successful traders. Each book features interviews with prominent figures in the trading world, offering insights into their approaches, decision-making processes, and experiences. The series explores various trading styles, risk management techniques, and the psychological aspects of trading. Schwager's work is highly regarded for its practical advice and real-world examples. The books provide valuable lessons for both aspiring and experienced traders.
Market Wizards
Jack D. Schwager
Market Wizards is a must-read for traders and financiers, offering a deep dive into the strategies and mental attitudes of the world's most successful traders. The book includes interviews with traders such as Bruce Kovner, Richard Dennis, Paul Tudor Jones, and others, revealing their approaches to trading and the factors that contribute to their success. It covers a wide range of markets, including treasuries, futures, commodities, and more, and highlights the importance of solid methodology and proper mental attitude in trading[2][4][5].
Interview recorded - 7th of April, 2025
On this episode of the WTFinance podcast I had the pleasure of welcoming back Jason Shapiro. Jason is a hedge fund manager and trading legend with 30+ years of trading experience. He was also featured in the book "Unknown Market Wizards".
0:00 - Introduction 1:20 - What are we seeing? 3:12 - Comparison to other periods? 7:53 - Who is selling? 12:30 - Contrarian investors. 16:03 - Current investor positioning 17:08 - Markets more volatile? 19:46 - Assets Jason is watching? 22:43 - Long time to learn trading 26:08 - Largest mistakes traders make 28:13 - What is a bad decision? 30:08 - What would make you change your strategy? 32:38 - Human nature 34:12 - Bad news, no reaction 36:48 - One message to takeaway?
With over 30 years of trading experience, Jason has gone through most markets a trader should see in their career. From the crazy rallies during the 90s, the tech bubble pop in early 2000s, the 2008 market crash and the latest bull run starting in 2009. Through the last 20 years of his career, he has used a contrarian approach which has been very successful to him and his clients, as verified by Jack D. Schwager in his latest MARKET WIZARDS BOOK. Jason has managed large sums of money from a few million to several hundred million and learned a great deal about the Futures markets, from Equities, Currencies and Fixed Income to Currencies and Precious Metals.
WTFinance 
