Jason Shapiro: How This Contrarian Strategy Gives You A Trading Edge | Investing With IBD | Summary and Q&A

TL;DR

Using the commitment of traders data and monitoring news failure events, Jason Shapiro employs a contrarian approach to determine market turns and trade opportunities.

Key Insights

• 🍉 Shapiro believes in contrarian positioning rather than contrarian price. He focuses on being contrarian in terms of market positioning, not blindly opposing the prevailing trend.
• 📰 News failure events, where market sentiment goes against news expectations, are crucial for confirming trading decisions.
• ✳️ Risk management is essential in Shapiro's strategy, and he emphasizes the importance of cutting losses and managing risk according to predetermined rules.
• 💁 Shapiro recognizes the significance of market consensus and pundit analysis as an additional layer of information but believes that the commitment of traders data and news failure events are more critical for his trading decisions.

Transcript

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Questions & Answers

Q: How does Jason Shapiro determine market turns and trade opportunities?

Shapiro uses commitment of traders data to identify crowded market positions. He waits for news failure events, where market sentiment contradicts news expectations, to confirm his trading decisions.

Q: What role does risk management play in Shapiro's trading strategy?

Risk management is crucial in Shapiro's strategy. He defines clear stop-loss levels and manages risk by following his predetermined rules. He believes in cutting losses quickly when a trade goes against him.

Q: Does Shapiro consider other indicators or signals in his analysis?

While his primary focus is on commitment of traders data and news failure events, Shapiro also pays attention to the analysis provided by market pundits. He listens to their consensus views and weighs them against his contrarian approach.

Q: How long does Shapiro typically hold his positions?

The duration of Shapiro's trades varies but typically lasts around three months. However, the length of a trade can range from a few weeks to over a year, depending on market conditions.

Summary & Key Takeaways

• Jason Shapiro utilizes the commitment of traders data to identify crowded market positions and potential trade opportunities.

• He looks for news failure events, where market sentiment contradicts news expectations, to confirm his trading decisions.

• Shapiro's approach focuses on risk management and managing positions based on market confirmation.