Contrariar An investor who subscribes to the Theory of Contrary Opinion, doing the exact opposite of what everyone else is doing, i.e., buying shares when everyone is trying to get out of the market and selling when others are buying. The contrarian believes that the market does the opposite of what investors think it will do. He, therefore, acts against the majority opinion. The contrarian’s logic is that when everybody says the market will rise, they have already fully bought and the market can only go down; similarly when everybody says that the market will fall they have already sold and the price can only rise.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Powered by WordPress