Investopedia

Continue to Site »

Contrarian

Filed Under »
Dictionary Says

Definition of 'Contrarian'

An investment style that goes against prevailing market trends by buying assets that are performing poorly and then selling when they perform well.

Investopedia Says

Investopedia explains 'Contrarian'

A contrarian investor believes that the people who say the market is going up do so only when they are fully invested and have no further purchasing power. At this point, the market is at a peak. On the other hand, when people predict a downturn, they have already sold out, at which point the market can only go up.

Contrarian investing also emphasizes out-of-favor securities with low P/E ratios.

Related Video for 'Contrarian'

Articles Of Interest

  1.

    What Is Contrarian Investing?

    Learn the method and reasoning behind this contradictory investment strategy.

  2. 3 Ways To Tell If Your Stock Has Bottomed

    No one can call stock bottoms with absolute certainty, but there are some common trends that appear when stocks are about to hit bottom.

  3. Can Perpetual Contrarians Profit As Traders?

    Succeeding as a contrarian is all about knowing when to act on your opinion about the next turn in the market.

  4. Investing Lessons From Across The Pond

    There's a lot to learn from Anthony Bolton, who is known as Europe's Peter Lynch.

  5. Buy When There's Blood In The Streets

    Contrarian investors find value in the worst market conditions. Find out how they do it.

  6. Finding Profit In Troubled Stocks

    Find out the difference between a company capable of surviving a share-price beating and one that cannot.

  7. Gauging Major Turns With Psychology

    Knowing what the market is thinking is the best way to determine what it will do next.

  8. What methods can be used to measure and profit from investor sentiment?

    First of all, when people talk about investor sentiment, or market sentiment, they are referring to the aggregate attitude in the investment community. Essentially, investor sentiment is an approximate ...

  9. Women And Investing: It's A Style Thing

    You don't have to be a boy or act like a boy to win. In fact, doing the opposite could be better for your financial health.

  10. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center