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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Hawk who wrote (5793)2/5/1998 11:48:00 AM
From: Robert Graham  Read Replies (1) of 42787
 
I see you use contrarian principles as part of your approach to the market. Unfortunately people confuse contrarian based approaches to the markets with the that of always making decisions contrary to the crowd. This gets many investors in trouble. IMO the important thing here to understand is that the crowd is right in a trend, and is wrong at both ends of the trend. During a trend, it is not wise to fade the crowd. At the ends of a trend is where it is prudent to go contrary to the crowd, not during a trend. So in this perspective, I agree with your contrarian observation. Matter of fact, if everyone was bullish right now, I would be concerned.

Bob Graham
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