Contrarian investing is a strategy built on the idea that the crowd is often wrong at critical turning points. When the majority of investors are selling out of fear, contrarians look for buying opportunities. When euphoria drives prices beyond reasonable levels, contrarians consider stepping back.

It sounds simple. In practice, it requires conviction, patience, and a clear understanding of why markets tend to overreact in both directions.

What Is Contrarian Investing

Contrarian investing means intentionally going against prevailing market sentiment. Rather than following trends or reacting to popular narratives, a contrarian investor seeks opportunities where emotional extremes have pushed prices away from underlying value.

The…