Contrary opinion attempts to push the idea of trading against the majority in individual trades. Although theoretically this approach might work given the right kind of information about market composition, in practice the information available to contrary opinion traders is of questionable significance. For instance, consider the consensus numbers. These are based on recommendations from market newsletters, advisory services, and so on. Therefore, these numbers model a very nonrepresentative group of traders—those who trade on market-letter advice. I don’t know even one. In any case, this is
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