Are You a Contrarian Forex Trader?

If you’re fed up with the usual alternative approach Forex traders are taking and you’re fascinated by tops or bottoms, you might want to start becoming more of a contrarian trader. Contrarian trading is like it sounds, going against the current momentum of other Forex traders. It’s like when you buy low and sell high.

Key Takeaways:

• When all charts point to a single direction and the current market sentiment is supported by the newswires, it’s easy to understand why many traders hesitate to go against the herd. But as investment pundit Warren Buffett famously said, “We should also be fearful when others are greedy and greedy when others are fearful.”
• Contrarian trading is a forex strategy that favors going against the current market bias in anticipation of a shift in market sentiment.
• Contrarian traders try to take advantage of moments when the markets get carried away by strong momentum.

“When all charts point to a single direction and the current market sentiment is supported by the newswires, it’s easy to understand why many traders hesitate to go against the herd.”

http://www.babypips.com/blogs/pipsychology/forex-contrarian-20161024.html