How to Profit from Crowd Behavior in the Financial Markets
Why is it so hard to beat the market? How can you avoid getting
caught in bubbles and crashes? You will find the answers in Carl
Futia?s new book, The Art of Contrarian Trading
book will teach you Futia?s novel method of contrarian
trading from the ground up.
In 16 chapters filled with facts and many historical examples
Futia explains the principles and practice of contrarian trading.
Discover the Edge which separates winning speculators from the
losers. Find out how to apply the No Free Lunch principle to
identify profitable trading methods. Learn about the wisdom
and the follies of investment crowds ? and how crowds are
formed by information cascades that drive stock prices too high or
too low relative to fair value. Discover the power of your Media
Diary - and how to use it to spot these information cascades,
measure the strength of the crowd?s beliefs, and decide when
the crowd?s view is about to be proven wrong.
You will watch Futia apply these principles of contrarian
trading to navigate safely and profitably through the last 26
tumultuous years of roller coaster swings in the U.S. stock market
? a time during which Futia kept his own media diary and
developed his Grand Strategy of Contrarian Trading. See how
this Grand Strategy worked during the Great Bull Market of
1982-2000. Watch the Contrarian Rebalancing technique in practice
during the dot.com crash of 2000-2002. Find out when the Aggressive
Contrarian Trader bought and sold during the bull market of
2002-2007. Read about the causes of the Panic of 2008 and ups and
downs of contrarian trading during that dangerous time.
Futia shows you how the market turning points during the
1982-2008 period were foreshadowed by magazine covers and newspaper
headlines that astonishingly and consistently encouraged investors
to do the wrong thing at the wrong time. By monitoring crowd
beliefs revealed by news media headlines ? and with the
guidance provided by the many historical examples Futia provides
? a trader or investor will be well-equipped to anticipate
and profit from market turning points.