Contrarian InvestingContrarian InvestingWhat is contrarian investing

Contrarian investing is a dynamic field and not a static one. The assumption that it’s a static field is held by the new breed of fashion contrarians, whose only contribution to this field has been to glamorise it and distort the true notion of being a contrarian investor. These fashion contrarians are no different from those with the mass mindset; they only pretend to do things differently, but the moment fear or uncertainty is in the air, they flee for the exits like bandits being chased by the hounds of hell. A true contrarian in most cases understands the basic rules of mass psychology. If you are not familiar with these rules, you are doing yourself a disservice and should catch up on them ASAP. These simple seven rules for contrarian investing will provide the newbie with a firm foundation on which he or she can build from.

At the Tactical Investor, while we embrace the concept of contrarian investing our true focus is on the joining the key rules of contrarian investing with the powerful concept of mass psychology. We believe this is the most robust system out there as psychology is the key driving force behind almost every human action.

We are going to provide a list of rules that we believe are the most important regarding contrarian investing. It will provide both the novice and seasoned trader with ideas that should help improve your trading skills if implemented properly. Discipline and patience are essential traits if you want to succeed; nothing comes easily, for if it did, everyone would be able to do what you are doing.

These contrarian guidelines by no means encompass all the rules associated with the concept of contrarian investing. However, they do provide you with a firm foundation on which to build your investment career.



Stock market bull still healthy in 2018Stock Market bull 2018 still healthyStock Market Bull 2018 Strong

The bull is still healthy; it’s taking a breather but the internal structure of the market is very strong, so while there are sectors that are pulling back more sharply than others, a host of them are holding up very well. In fact, as we stated last time, there is a huge number of stocks that have refused to correct, and a large percentage of them have surged to new highs during this corrective phase.

There is so much misinformation when it comes to the financial markets that it must seem like a daunting task for a novice player to separate the riff from the raff. One would think that with the passage of time the situation would improve, but its only worsened. However, there is a ray of light which will eventually turn into a massive beam; traditional finance sites are losing eyeballs, and the level of dissatisfaction has now hit a critical mass, which means that this sector is ripe for a trend change. We can state without a doubt that when this trend change occurs many established sites and business in this sector will vanish.

Most of Today’s Experts Hide Behind GibberishThey use complex fundamental terms or complex technical analysis studies to justify their position. A simple examination will reveal that over 80% of these guys are full of it and that they only reason they come up with that mumbo jumbo is to make it look like they know what they are talking about when the opposite is probably closer to the truth.

While we do favour some aspects of Technical Analysis, we are not TA fanatics. We have done our level best to present these tools in a simplified manner without trying to fixate on complex formations (Head and shoulders, wedge formations, etc.) and we will continue to look for ways to simplify the technical analysis aspect even more.