• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

What 'Jeopardy! Greatest of All Time' Teaches Us About Trading Stocks

It's not enough to just know the 'answers' of the market, you need a strategy to really win big.
By JAMES "REV SHARK" DEPORRE
Jan 15, 2020 | 11:11 AM EST

The venerable game show "Jeopardy!" has been running a "Greatest of All Time" prime time special. On Tuesday night, Ken Jennings was officially crowned the winner.

I started watching "Jeopardy!" when I was in elementary school and would pretend to be sick, so I could stay home, eat soup and watch game shows. In all the years since then, there has been little change in the strategy that contestants would employ. The show was mainly a test of a broad range of knowledge and the ability to hit the buzzer first.

In recent years the strategy employed by the players has changed quite a bit. This came about primarily due to James Holzhauer, who is a professional sports gambler. Holzhauer employed aggressive gaming strategy and ended up with winning amounts that far surpassed anything seen before.

For the top-level players, the game was no longer just about knowing the right answers. They could all answer most of the questions; the focus was primarily on hitting the buzzer quickly and finding some sort of strategy edge.

The edge that makes all the difference is the "Daily Double." "The Daily Double" allows players to upsize their bets and establish an unbeatable lead if they hit on one when they have a large number of points already accumulated and can place a huge bet. Finding the "Daily Double" at the right point in the match was the key to winning.

This has interesting parallels to trading. The lesson is that when you have an edge, then you up-size your bet. As George Soros has said, "It's not whether you're right or wrong, but how much money you make when you're right and how much you lose when you're wrong."

In the course of our trading we will hit on a "Daily Double" every once in a while. The opportunities will occur randomly and unexpectedly, but when they do occur, the smart move is to capitalize on them the best we can. Yes, it involves increased risk, but to be the "Greatest of All Time," you have to be aggressive when you are offered an opportunity to make a big bet with reduced risk.

Players on "Jeopardy!" had been playing the game the same way for decades, but the truly great figured out that it took more than knowledge to be a winner. It took a strategy.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, DePorre had no position in the securities mentioned.

TAGS: Investing | Stocks | Television Production/Distribution | Trading Strategies | Celebrity Interviews

More from Stocks

The Week Ahead, Indo-Pacific Deal, S&P 500 Valuation, What I've Been Trading

Stephen Guilfoyle
May 23, 2022 7:33 AM EDT

Markets now have a new reversal to think about, but I think I have to be convinced before I can believe.

Anxiety Builds Among Traders Trying to Catch a Market Turning Point

James "Rev Shark" DePorre
May 23, 2022 7:21 AM EDT

They are eager to make up for recent difficulties and are often more aggressive than normal.

Fight Fear, Follow Facts

Paul Price
May 23, 2022 7:00 AM EDT

It is far too late to be holding tons of cash. Traders loading on owning put options or shorting shares of decent companies are likely to get their heads handed to them.

Saved From the Dreaded Bear Market

Helene Meisler
May 23, 2022 6:00 AM EDT

If you didn't know we were in a bear market, now you know.

Melvin Capital's Demise Presents a Beauty of an Opportunity

Brad Ginesin
May 22, 2022 1:20 PM EDT

The top holder in several companies, the hedge fund's abrupt liquidation has contributed to weakness.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login