Contrarian trading strategies
Résumé
Contrarian trading is a form of active portfolio management that seeks to profit from collective limitations in human behavior that lead to predictable patterns in investment returns. Relevant to these patterns, contrarian investors anticipate performance reversals, thereby taking long positions in past losers and short positions in past winners to exploit them. The returns of contrarian traders seem to be abnormal, although there have been evidence to the contrary, yet not universal.