9.14.2007

Countertrend Strategy

Countertrend Strategy: "Countertrend Strategy What does it Mean? A trading strategy where an investor attempts to make small gains through a series of trades against the current trend. It is also known as 'counter-trend trading'. Investopedia Says... Contrarian investors perform counter-trend trading strategies - purchasing shares when prices are low and selling when they're high. The investor receives smaller gains since the full market swing is not recognized. Many counter-trend investors use momentum indicators to determine the best times to execute their trades."