Given a sufficient number of people and an adequate amount of time, you can create insurmountable opposition to the most inconsequential idea. – Anonymous

Contrarian investing is a vibrant sports ground and not an inert one. The hypothesis that it’s an immobile field is held by the new breed of fashion contrarians, whose only role has been to glamorize it and warp the true notion of being a contrarian investor. These fashion contrarians are no different from those investors whose main driving force is raw emotions. These investors with the mass mindset only imagine that they are doing things differently, but the moment panic or doubt is in the air, they take flight like bandits being chased by the hounds of hell.  A real contrarian is generally familiar with the basic concept of mass psychology.  If you are not familiar with these rules, you are doing yourself a disservice and should catch up on them ASAP. Our recent article published on this site should give you a primer on the subject. The most basic tenet of mass psychology is that one should not abandon ship until the crowd is in a euphoric trance and vice versa. For example, if the market is in a bullish phase, you do not bail out just because the masses have jumped on the bandwagon. Instead, you should wait for them to move from the cautious to the  euphoric phase before heading for the exits.  

While we embrace the concept of contrarian investing, our true focus is on the joining the key rules of contrarian investing with the powerful concept of mass psychology. The combination of the two methodologies creates an extremely robust system. Psychology is the key driving force behind almost every human action and understanding it could significantly improve your overall experience and results as an investor.  To this winning combo, we add technical analysis and the end result is an unbeatable system. This is what led us to craft the trend indicator, a tool that magnificently combines the supreme elements of technical analysis with the most compelling elements of Mass psychology.

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