The Art of Contrary Thinking

Heres another great book by one of my favorite authors Humphrey Neill. For those who are familiar with Le Bon's "The Crowd", you will find this a pleasant read. For most traders, contrary thinking is nothing new. "When everybody thinks alike, Everyone is likely to be wrong." From fading breakouts to oil prices increasing after Saudi states an increase in production... all ideas that can be profitable ONLY if one can apply the art of contrary thinking successfully. While the majority are wrong on many occasions (such as tops and bottoms), the herd are right at times as well (in the middle of a trend).

Hopefully those who approach trading have a mind of their own. Otherwise, I do believe trading is a tough challenge if you have always been a part of the herd or what Orwell calls "groupthink". Placing trades, taking losses, creating a strategy, etc... are elements of trading that one needs to do on his own. If you find yourself asking for trading execution advice or questions like "Are you long/short?" you may need to pick this book up and learn what mindset is required in this game where money is transferred from the many to the few. Only the ones with a bold and independant mind will survive this game. A recommended read.