RE: Wisdom of Crowds vs Herd Mentality

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Wisdom of Crowds vs Herd Mentality

in investing •  7 years ago 

The Contrarian investment style is probably the toughest style there is. Timing is everything. In the dotcom bubble people lost millions by betting against the tech stocks too early.

"The market can remain irrational longer than you can remain solvent " - John Maynard Keynes

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It's a great quote though I am hardly a fan of Keynes. Quite the opposite.

Timing the market is near impossible, but often near enough is good enough and it's better to be too early than too late....

I don't Short stocks as a rule, nor Cryptos for that matter. The closest I would come would be options or warrants with some effective stop loss protection, but you don't need financial derivatives to be an effective Contrarian.