Forex Videos

Contrarian Investing is an ideology in which the investor chooses to make investment decisions that go against the popular consensus. The movement of market combined with signals such as buy and sell orders give investors a good idea of trends of their fellow investors. When a stock is going down it generally means the investors are bearish or pessimistic about its future. When a stock rises it means that the general investing population is bullish or optimistic about its chances. Contrarian investors like to go against the stream of investor consensus and do the opposite of what the majority are doing. Often that means selling a stock that many others are buying. Contrarian investors take these opposing view points simply because it allows them to take advantage of what they see as a mispricing in the market. For example they might not think the current investor pessimism is well founded so they see some price dips is temporary misspricing that they can capitalize on. So while most investors are scrambling to sell contrarian investors are buying. In essence contrarian investors live by the adage of buy low and sell high. In other words contrarian has a negative connotation. Contrarian investors are not consistently bearish or pessimistic on the market and they are doing the opposite of what the majority of investors are doing.