Tuesday, May 24, 2011

Do Contrarians use all disciplines?

 me:  gm
 Sent at 9:58 AM on Tuesday
 aa:  gm.  despite all that European gloom, things are looking inexplicably rosier this morning....
 Sent at 10:02 AM on Tuesday
 me:  good
 Sent at 10:03 AM on Tuesday
 me:  question: what is contrarian investing?
 Sent at 10:06 AM on Tuesday
 aa:  going against the (perceived) grain
 Sent at 10:07 AM on Tuesday
 aa:  buying yandex this morning?  the last google-like company to go public, Baidu, did quite well....
 Sent at 10:11 AM on Tuesday
 me:  hang on, I'm trying to go somewhere with this...once you buy something in contrarian investing and your right, then your actually following the trend....
aa: ?
 me:  just like the value investor becomes a growth/momo investor if his idea works...
 aa:  or, rather, what about double contrarian? :-)
 me:  is there really such a thing as a double contrarian?
 Sent at 10:14 AM on Tuesday
 me:  what's the difference?
not double, but what's the difference between the styles of investing?
 aa:  which?  contrarian and following a trend?  I thought contrarian was more trailblazing, trying to be ahead of a new trend...
catch the wave at the trough, before the wave builds...
...when it's uninteresting...
 Sent at 10:18 AM on Tuesday
 me:  yeah, but once you do....are you not just riding the trend up? same with value stocks
 Sent at 10:21 AM on Tuesday
 me:  what tells u to get off the wave?
 Sent at 10:23 AM on Tuesday

 aa:  you get off when your strategy has paid off, and you find another contrarian opportunity.
 Sent at 10:27 AM on Tuesday
 me:  your not getting out of this that easy. At what point does your strategy play pay off?
 Sent at 10:30 AM on Tuesday
 aa:  it depends on your target, but hopefully you get out before a top, or at least a long-range top.  a strategy for me pays off with a high % return
 Sent at 10:31 AM on Tuesday
 aa:  but if your target is more modest, then one has to stick with that.
just because my targets are lofty, doesn't mean I attain them....
 me:  point is, if  your a value or contrarian investor your actually practicing two styles...your initial strategy, then once you start riding a wave, your a momentum/growth chaser...
 aa:  actually, to be truly contrarian you have to be all types of investor: contrarian, value, momentum, dividend, technical, fundamental, greenhorn and old salt
and willing to switch hats as need dictates
 me:  hmm
 aa:  flexibility, adaptability, skepticism
and persistence
 Sent at 10:34 AM on Tuesday

check out this blog article -    http://www.wealthvault.net/investing/are-you-a-coif/

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