Successful Trading is the Antithesis of Human Nature

Stansberry Investor Hour

Stansberry Research

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4.4 • 677 Ratings

🗓️ 30 January 2024

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

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Summary

Dan and Corey begin the show by discussing evidence that we're still in a bear market. They bring up equal-weight indexes fizzling out since December, the now "Magnificent Six" tech stocks still dominating, and the possibility of a decade long sideways market.

After, contrarian trader Jason Shapiro of digital publishing company Crowded Market Report joins the conversation and gives an overview of his trading style, his financial journey, and how his strategy differs from many other traders'. While others are looking to ride the trend, Jason explains that he's looking to "fade" it and find when the trend will turn. When speaking specifically about putting the risk-reward ratio in his favor over time, he says the discounting mechanism in the market is not price – it's participation.

This segues into a discussion about how Jason's process works. He gives advice to individual investors who are just starting out, including warning of the dangers of following trends and "copy trading." He also details how trading goes against human nature.

Then, Jason discusses automation in his field of work – when he uses it and when he ignores its advice – and provides some examples of his strategy in action. He emphasizes that market confirmation should always come first

Lastly, Jason explains why he's so adamant about sharing his approaches and techniques with everyday investors that they can't find in traditional financial media. And you won't want to miss Jason's answer to the final question... He shares what he believes is the real secret behind making money in the markets.

Transcript

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0:00.0	Hello and welcome to the Stansberry Investor Hour. I'm Dan Ferris. I'm the editor of Extreme Value and the Ferris Report, both published by Stansberry Research. And I'm Corey McLaughlin, editor of the Stansberry Daily Digest. Today we talk with veteran trader, a true market wizard, Jason Shapiro. And Corey and I will talk about the current
0:21.7	bare market. Yes, you heard me right. And remember if you have a question or want to tell us what's on
0:26.5	your mind, as always, email us at Feedback at InvestorHour.com. That and more right now on the
0:32.8	Stansbury Investor Hour. investor hour.
0:48.4	You heard me right, folks. I said bear market. It's Dan doing that bear market thing again.
0:56.0	What I'm specifically referring to, I'll tell you the way I see it, and then I'll tell you some stuff I saw on Twitter by the Luthold Group, which is a pretty well-known research firm.
0:59.1	They do really good historical research.
1:01.6	And for me, personally, what I see is the regular S&P 500 is up, you know, making new highs.
1:13.3	Great. The Dow was making new highs as of, I think, October or November. Okay, great. But the equal weight S&P is not doing nearly as well.
1:21.2	And I'm pretty sure you can do the same sort of exercise with the NASDAQ 100 and equal weight,
1:27.3	though they're both making new highs.
1:29.4	However, the thing that concerns me is the NASDAQ composite, not making new highs.
1:35.8	The Russell 2000, not making new highs.
1:40.3	And I told you the Luthold group has put out a tweet and they're talking about the fact that the this doesn't be the the the market is not behaving like the early stages of any past bull market that they've studied, right?
1:56.6	The initial conditions preceding, you know, the bull run of late last year and now into this
2:01.8	year, were different. And the small cap rally is not nearly as big as what you'd expect at the
2:10.4	beginning of a typical bull run. So, you know, they say we're still in a bare market. And I
2:17.2	have to agree with that. And, you know, it looks like we're still in a bare market, and I have to agree with that.
2:19.1	And, you know, it looks like we're back to 2023.
2:22.1	The Mag 7 is in charge, the Magnificent 7, right?
2:25.5	Apple and Microsoft, Amazon, Alphabet, Tesla, and Vida, meta-platforms.
2:33.8	They're pulling up the big indexes where the equal weight indexes are weaker because, you know,
	...

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