Monday, December 18, 2006

Contrarian Strategy

Some useful contrarian strategy found. IN fact, I am thinking that these signals could be much more relevant than any existing technical signals found on the traditional TA books.

As it really need much time to compile a comprehensive list, here we got only 3 for your reference.

Contrarian #1: When the forum is hot, and become hotter, and become very hot, sell your entire share.

Contrarian #2: When unrelated people start to talk about stock, perform partial profit taking. I some how wonder, how the syndicate able to know so precisely that just at the moment so many small fishes join the game, they straight kill them all. In Malaysia, seems like the syndicate is very hungry and don’t really want to wait for more fishes to be trapped.

Contrarian #3: A newspaper buy is a buy signal. But if the buy recommended does not result in higher price in the market, sell instead.

Don’t be a contrarian for the sake of being a contrarian. When to be contrarian and when not to be is an art that need years of experience and concentration on the market.

~ Booffett ~

3 comments:

Trader Max said...

Hmm, all focus on exit strategy only?
How about enlightening us with entry strategy?

booffett said...

exit and enter, all i believe is an art.

so everybody got their own tactics.

enter i believe will be much easier.

when the remisier is catching mosquitoes in the office, that is the time to enter.

Trader Max said...

Hahahahahaha
Okay... agree from a value investing point of view.