On The Contrary

On The Contrary

Most investors talk about getting the inside scoop, and getting in on the action early, but there’s an opposing mindset that often gets forgotten yet has proven lucrative throughout the history of the stock market. Contrarian Investing, as it’s known, is when gutsy investors bet against the climbing trends. In other words, if a stock is making the news, don’t buy it, sell it. Because if it’s on the news you can bet the industry has known about it for a while and it’s bound to plateau and fall. The same is true for the plunging stock — this method preaches buying when everyone wants to sell and selling when everyone wants to buy. Interested in a stock that no one has ever heard of? No worries. Smart contrarian investors say to go with your gut, because you may be intuitively aware of something the market is ignorant on. There being no news about it doesn’t mean it’s worthless. The idea here is to go against the grain, with bigger payouts as a result.   RYAN THOMAS

On The Contrary