5 Dumb Mistakes That'll Tank Your Contrarian Strategy

When stops start to be triggered, and margin calls are produced, it is just at the moment that we should go out and buy

Photo by Sarah Kilian on Unsplash

Contrarian investing is one of the most profitable types of investment there is. We have already discussed it in several articles, but I recommend this one that sums up our philosophy quite well.

To summarize, this style consists of selling when everyone is buying, and there is a huge euphoria in the markets, and buying when people are selling their mother. When stops start to be triggered, and margin calls are produced, it is just at the moment that we should go out and buy.

It is one of the investment styles that can make you the most money. But the main funds worldwide refuse to implement this style because it requires latent losses in the short term.

Generally, it is complicated to buy at the lowest point and sell at the highest, so it is advisable to purchase during the falls gradually. Buying in these situations implies losses in the short term because the general rule is that prices will continue to fall. This is difficult to explain to fund partic…