A trading paradox is a situation in which the behavior of market participants or the market itself contradicts established market theory or conventional wisdom. One example of a trading paradox is the “Efficient Market Hypothesis” (EMH) which states that financial markets are always perfectly efficient and that it is impossible to consistently achieve higher returns than the overall market. However, there are traders and investors who are able to consistently achieve higher returns than the overall market, which contradicts the EMH. Another example is the “Paradox of Thrift” which states that saving more in a recession can lead to a decrease in economic activity and worsen the recession.