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Definition

An investor who believes that to beat the market you have to be right when the market is on average wrong. Contrarians delight in buying when everyone else is selling and vice versa. They take the attitude that it is "darkest before dawn". There are dangers in this approach since it is difficult to determine when a bear trend or a bull trend has run its course. However, contrarians do have one benefit - they generally avoid buying at the top and selling at the bottom. So they are doing better than some investors.

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