We have often heard that from Warren Buffet haven’t we! About being greedy and fearful at different times, bucking the trend of the majority by being in a minority. Being a contrarian not being a follower!
It seems there is more and more research and insights saying the same thing.
- Research Shows Negative Effects of Following the Herd
- Some other research we spotlighted recently, Different Research Methodology Begins to Change Commonplace Misconception that Retail Traders and Investors Generally Lose Money pretty much concluded exactly that:
- Be in an informed contrarian minority!
- Don’t be in the uninformed follower majority!
How do you move from the majority to the minority? Get informed by getting educated about contrarian approaches. That is the essence of what we teach with our Core Strategy methodology at Online Trading Academy! To be an informed contrarian not an uninformed follower. In other words:
- Don’t buy when everyone is buying or sell when everyone is selling. Don’t follow the herd!
- Don’t buy, hold and hope like many people are doing. If you are guessing, you are gambling!
- In fact, don’t buy or sell at current price at all. Instead, identify supply and demand zones some distance from current price, set a potential trade entry and exit and see if price comes to you!
- Make risk management a foundation of your trade plan. That is a strategic plan for being a retail trader and investor!
- Take a responsible approach to risk management and getting educated to know what you are doing.
Be in an informed contrarian minority not an uninformed follower majority. In an April 2021 survey of over 1000 of our Online Trading Academy students:
- 85% reported that they had created a trade plan.
- 76% said they were more knowledgeable about how to manage risk
- 69% said that they wished they can started their education sooner
Be a contrarian, don’t be a follower.
The OTA Research Center collects, collates and comments upon public domain research and perspectives that it feels may provide interesting insights. This content is provided for information only and OTA makes no representations about its accuracy.