The assumption that a certain market trend is almost always based on (erroneous, wrong; fallacious) herd behavior. Therefore, it is worthwhile to adopt an opposite behavior. This is because high profits can be made quickly from the sharp fall in prices when there is selling pressure or the rise in prices when there is excess demand, if trades are made in the opposite direction. – Experience shows, however, that the expectations of contrarians (investors who take an opposite viewpoint from the majority) have very rarely been fulfilled, and this applies to both commodity markets and financial markets. – See assessment, contrarian, financial psychology, herd behavior, hindsight, contrarian speculation, myopia, rebbes, sine curve fetishism, gambling doctrine, staggering.
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