Market Wizard Jason Shapiro – Fading the Herd – AlphaCast Ep. 6
Join host Leo as he picks the brain of legendary trader Jason Shapiro, featured in the acclaimed book Unknown Market Wizards.
Gain powerful insights from Jason’s decades of trading experience using a contrarian approach based on commitment of traders data and sentiment. Learn how he manages risk, resists the urge to take profits early, and navigates market psychology.
Key Takeaways
- Fade the herd mentality – Jason uses COT data to position against the consensus.
- Let winners run, cut losers quickly – Jason systematically follows profit taking and stop loss rules.
- Leverage small edges – With sound risk management, small edges compound over time.
- News confirms sentiment – Look for market reactions that confirm positioning to trade.
- Persevere through early struggles – It took Jason 14 years before becoming consistently profitable.
Timestamps
- [9:40] Contrarian trading and COT data
- [17:00] Developing a systematic process
- [25:00] Risk management advice
- [35:00] Using sentiment and psychology
- [48:00] Jason’s approach and resources
Quotes
“Trying to predict markets is very difficult – reacting using sentiment analysis can give an edge.”
“Have concrete rules for entries, exits, and position sizing – consistency comes from systematizing your process.”