The Contrarian Trader - "Buying Stocks Before The Crowds Rush In."

"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well." - Warren Buffet Net Worth: $62 Billion (2008)

From: Robert Desmond
RE: Unpopular Stocks Can Make You Rich..

Dear Stock Trader,

I can't believe it..

I just don't understand why so many people simply shrug their shoulders at one of the most powerful trading strategies ever.

I'm talking about a trading strategy that helped Warren Buffet build the greatest fortune in the entire world. Yup, he's been implementing it since day one.

He figured out early in his career that buying stocks that the media and general public are touting is more often than not a losing strategy.

It's better to find stocks that no one is really talking about.

Why? Because they are cheaper.

If you can find stocks with high upside potential, that are being virtually ignored at the moment, you stand to make huge gains when the crowds finally figure it out and come rushing in.

This is called Contrarian Investing, also known as Value Investing.

Basically you are going against the crowd in a very calculated way.

It really is the ultimate buy low, sell high style of investing.

There's just one problem..

Investing like Warren Buffet is a sit and wait game. Sometimes it can take years to realize substantial gains.

I don't know about you, but I don't have the patience to wait years.

I want results much sooner.

So what's the solution?

It's called "Contrarian Trading".

What is Contrarian Trading?

Contrarian Trading is a style of trading that goes against what the masses are doing at the time.

Using several key indicators, we can pinpoint huge shifts in the crowds before they happen.

This allows us to buy a stock just before it takes off in one direction or another.

The concepts we use are similar to that of Contrarian Investing, but there is one blaring difference, we hold positions for an average of 2 - 6 weeks instead of 5 - 10 years.

We often take profits after holding a position for just 1 week.

In recent years, Contrarian Trading has been presented with enormous opportunities, and it has been growing everyday.

With all the new technology and the speed of news and media these days, the trading environment has transformed dramatically in just the last 10 years.

Think about it, anyone with $500 and Internet access can buy and trade stocks with the click of a button.

The stock market has never seen anything like this before, hoards of everyday people are flooding the markets.

A huge percentage of this new breed of traders treat the markets like huge casinos. They gamble with their money on uneducated trades.

They essentially have no idea what they are doing. So instead of doing their own research, they follow recommendations from news sources, friends or even t. v. personalities.

They get into a herd mentality and rush to purchase the next hot stock of the day.

When you get millions of people trading in these herds, prices make big moves really fast.

As a Contrarian Trader, I love to see this.

Contrarian Trading Strategies
That Make Money Like Clockwork

Here are the Contrarian Trading Strategies that I use everyday. I am always on the lookout for stocks that match these situations. When I find one, it's like money in the bank..

Media Hyped Stocks - These are stocks that the media and analysts have been hyping like crazy.When stocks are hyped like this, they increase or decrease in value because of the hype, not the fundamentals.

As a Contrarian Trader, you would identify these fake inflated prices and ride the snap-back for some quick and easy profits.

Extremely Oversold Stocks - When the masses suddenly sell off a stock, they usually get carried away. People start trading with emotion instead of common sense. They get spooked and the price drops like a rock.

As a Contrarian Trader, you see this as a great buying opportunity. As the crowds sell off, you are waiting for the perfect entry point, knowing that stock is severely oversold and ripe for a quick reversal.

Extremely Overbought Stocks - Again, as a Contrarian Trader you are looking to out think the crowds. If they are buying into a stock like crazy and the media is getting behind them, that stocks price is going to inflate into unwarranted territory. That's when you swipe in and take a short position.

As fast as that stock rose in price, it will come crashing down twice as fast giving you some nice gains.

Overlooked Stocks - The name says it all, these are stocks that everyone else has either overlooked or ignored. They are cheap and prime for a huge price increase. When the crowds finally figure out how good these stocks really are, we just sit back and ride the wave.

All of the Contrarian Strategies above will put you in a position to capture big profits in a relatively short period of time.

In fact I rarely hold my stocks longer than a month.

No more tying up your money for years in investments that might not even produce a return.

In fact, I will go out on a limb and tell you that Contrarian Trading is even safer than Traditional Investing.

Safer Than Traditional Investing?

Let's think about it for a minute. When you invest the traditional way, your money is tied up in a stock for years. You are hoping that any stock fluctuations will work themselves out and your investment will slowly grow.

First of all, there is no certainty that a stocks price will grow. I have seen stocks go for 10 years without moving more than a few dollars in one direction or another. Sometimes the stock will even go down.

That's not a very good way to make your money work for you.

Second, who knows what can happen during all those years your hard earned cash is tied up in those stocks..

• One terrorist attack could send your investment into a landslide.

• The dollar could crash causing the company you invested in to crash with it.

• Some new technology could come out leaving the company you invested in obsolete.

• Fraud could be found within the company sending it into a tail spin.

• A newer company could come in taking up huge chunks of market share, or even collapsing the company you invested in.
  

• The US housing market could crash sending the Dow down 777 points in one day and sending the economy into a depression.

The possibilities are endless.

Instead of tying up your cash for years in investments that might or might not create a return, you could be Contrarian Trading.

Contrarian Trading is all about getting in and out of your trades within just a few weeks to minimize risk and still retain substantial gains.

Introducing:
"The Contrarian Trader"

The Contrarian Trader is the name of my daily stock trading newsletter.

I use a proprietary stock screener which scans the entire market for optimal contrarian buying opportunities.

When I find a stock that is ready to pop in one direction or another I buy it.

Every time I make a purchase, I instantly send out an alert to my subscribers with details of the trade.

My subscriber can then do their own due diligence in deciding whether that particular trade is for them.

I primarily follow stocks that are near the end of an upgrade or downgrade cycle.

Stocks that have reached my screen as a potential trade candidate have already been through a major sell off or have had major bull moves and are ripe to short.

My system recognizes the following:

A) Identifies "bottoming" consolidation patterns.

B) Identifies a specific price range to buy a stock. That price is
calculated by using software that calculates reliable previous
support.  If we do not get the stock at our price we never execute the
trade. Why? "The money is made on the buy" When you chase a stock
you lose your edge.

C) Buying or Shorting Stocks with a minimum Risk to Reward Ratio. Our
goal is to not only make money but to avoid losing it.

D) Recognize stocks that have the potential for a short covering rally.

E) Identifies at the time of the trade how much of a loss we are willing
to accept on the trade.