Jason Shapiro Market Wizards Reveal 30+ Years of Trading Experience

Jason Shapiro, a seasoned trader, has spent over 30 years in the market, gaining valuable insights and expertise. He has been featured in the Market Wizards series, a collection of interviews with successful traders.

Shapiro's extensive experience has taught him the importance of discipline and risk management. He emphasizes the need to stay focused and avoid impulsive decisions.

One of Shapiro's key principles is to avoid over-trading, which can lead to unnecessary losses. By being selective with trades, he aims to maximize profits while minimizing risks.

Through his years of trading, Shapiro has developed a keen sense of market awareness, allowing him to anticipate and adapt to changing market conditions.

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Jason Shapiro is an American trader, which is a pretty straightforward fact. He's the one behind the Crowded Market Report, a platform where he shares his knowledge with others.

Jason Shapiro, also known as "The Wizard", is a highly respected market expert with a remarkable track record. He has been featured in numerous publications, including Forbes and Bloomberg.

Shapiro's career has been marked by impressive trading results, with some of his trades returning as much as 1,000%. His expertise in technical analysis and market sentiment has earned him a reputation as a top performer in the industry.

Despite his success, Shapiro has faced significant challenges in his career, including the 2008 financial crisis, which he navigated with remarkable skill. His ability to adapt to changing market conditions has been a key factor in his continued success.

Shapiro's approach to trading is centered around a deep understanding of market psychology and the ability to read market sentiment. This skill has allowed him to make accurate predictions and capitalize on market trends.

One of Shapiro's most notable achievements was his ability to predict the 2015 stock market crash, allowing him to avoid significant losses. His expertise in identifying market vulnerabilities has been a key factor in his success.

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Jason Shapiro's investment strategies were instrumental in his rise to the top as a trader. To establish his own futures trading dynasty, he relied on a few key strategies.

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Shapiro's approach involved analyzing market trends and making data-driven decisions. He was known for his ability to identify patterns and capitalize on them.

One of Shapiro's core investment strategies was to focus on the futures market, where he could leverage his expertise to make informed trades. By doing so, he was able to establish a reputation as a skilled trader.

Jason Shapiro's average return is a remarkable 15% annual returns over two decades. This is a testament to the power of long-term investing.

His strategy has allowed him to achieve a maximum 5% drawdown, which is a relatively low risk. This suggests that he has a solid understanding of risk management.

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To establish a solid foundation for your investment portfolio, it's essential to identify a clear set of core investment strategies. Jason Shapiro's playbook is a great example of how to achieve this, and it starts with understanding his core investment strategies.

His approach is centered around futures trading, which involves investing in commodities or financial instruments with a set expiration date. This type of trading requires a deep understanding of market trends and a well-thought-out plan.

Shapiro's success can be attributed to his ability to adapt to changing market conditions, which is a crucial aspect of any successful investment strategy. By staying informed and adjusting his approach as needed, he's been able to establish a futures trading dynasty.

One of the key takeaways from Shapiro's playbook is the importance of having a clear set of core investment strategies in place. This will help you navigate the markets with confidence and make informed decisions about your investments.

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Jason Shapiro's approach to market analysis is centered around using Commitments of Traders (COT) data to inform his trades.

COT data provides a weekly snapshot of market participants' commitments in the futures market, including large traders, small traders, and producers or users of physical commodities. This data is released by the Commodity Futures Trading Commission.

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Jason Shapiro first encountered COT data after the 1999 Nasdaq bull market, where he saw the bubble and tried to short the stock but was unsuccessful. He later realized that COT data could have been his life raft, guiding him to safer shores and saving him a fortune.

The COT Index tracks the market positioning of three groups: Commercial Traders (red), Large Speculators (Blue), and Small Speculators (Yellow). It's based on weekly COT reports published by the CFTC.

Commercial Traders are hedgers like producers who short futures to lock in prices. They are considered crowded short when relatively less short than normal.

Large Speculators are hedge funds and others required to report positions. They provide liquidity by speculating.

Small Speculators are remaining non-reportable positions after Commercial and Large positions are accounted for.

Jason Shapiro turns the COT into an oscillator looking at relative positioning over time to identify crowdedness indicating potential reversals.

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Jason Shapiro's approach to risk management is centered around avoiding Value at Risk (VaR), which he believes is based on historical correlations that don't reflect current risk. He prefers to rely on his own risk management, using Commodity Futures Trading Commission (COT) data and focusing on timing his entries and exits.

Shapiro's strategy involves aiming to be right 30% of the time, making big profits on the trades where he is correct, and minimizing losses on the trades where he is wrong. This approach has led to an impressive average annual return of 15% since 2003, with a maximum drawdown of only 5%.

To achieve this, Shapiro looks for situations where the potential return is higher than the potential loss, and he focuses on positioning and sentiment to identify potential opportunities.

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Learning from Past Mistakes is crucial in trading, as Jason Shapiro's story shows. He openly admits to failing many times, but having an open mind about failure and learning from it allowed him to succeed.

Shapiro's experience underlines the importance of understanding the market and learning from its ebbs and flows. This is akin to a sailor learning to navigate the sea.

A setback like losing money doesn't have to be a disaster, as Shapiro still had his Porsche and valuable lessons from his mistakes. Each challenge presents a learning opportunity, making the trader better equipped to navigate the market.

Jason Shapiro's story is a testament to the power of resilience and learning from failure. He didn't let his losses define him, but instead, used them as a chance to learn and grow.

By learning from past mistakes, traders can develop a deeper understanding of the market and its rhythms. This understanding can help them make more informed decisions and avoid repeating the same mistakes.

Shapiro's experience shows that even in a bull market, things can quickly turn around, and a winning streak can end. The key is to stay adaptable and keep learning from the market's ups and downs.

Avoiding Value at Risk (VaR) is a key aspect of risk management. VaR is a statistical technique that measures potential loss, but it's based on historical correlations, which may not reflect current risk.

Jason Shapiro, a successful trader, avoids using VaR to inform his trades. He believes it's like driving a car using only the rearview mirror, and by the time VaR adjusts to an abrupt shift in correlations, it's too late.

Shapiro prefers to rely on his own risk management, which involves analyzing COT data and knowing when to enter or exit a position. He aims to be right 30% of the time, making big profits on the ones he's right on and losing small on the ones he's wrong on.

A risk-to-reward ratio in your favor is essential for successful trading. This means that the potential return should be higher than the potential loss. Shapiro looks for situations where the market may be over-discounting a particular asset.

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To avoid losses, it's essential to learn from past mistakes. Shapiro openly admits that his success is due to his ability to learn from failure and have an open mind about it. He emphasizes that failure is an opportunity to learn and improve.

A sailor navigating the sea learns from the tides, winds, and currents. Similarly, a trader should learn from the market's ebbs and flows, using each challenge as a chance to improve their skills.

Here's a simple risk management framework to keep in mind: