Book description
Why is it so hard to beat the market? How can you avoid getting caught
in bubbles and crashes? You will find the answers in Carl Futia's new
book,
The Art of Contrarian Trading
. This book will teach you Futia's novel method of contrarian trading
from the ground up.
In 16 chapters filled with facts and many
historical examples Futia explains the principles and practice of
contrarian trading. Discover the Edge which separates winning
speculators from the losers. Find out how to apply the No Free Lunch
principle to identify profitable trading methods. Learn about the
wisdom and the follies of investment crowds - and how crowds are
formed by information cascades that drive stock prices too high or too
low relative to fair value. Discover the power of your Media Diary -
and how to use it to spot these information cascades, measure the
strength of the crowd's beliefs, and decide when the crowd's view is
about to be proven wrong.
You will watch Futia apply these principles of contrarian trading to
navigate safely and profitably through the last 26 tumultuous years of
roller coaster swings in the U. S. stock market - a time during which
Futia kept his own media diary and developed his Grand Strategy of
Contrarian Trading. See how this Grand Strategy worked during the
Great Bull Market of 1982-2000. Watch the Contrarian Rebalancing
technique in practice during the dot. com crash of 2000-2002. Find out
when the Aggressive Contrarian Trader bought and sold during the bull
market of 2002-2007. Read about the causes of the Panic of 2008 and
ups and downs of contrarian trading during that dangerous time.
Futia shows you how the market turning points during the 1982-2008
period were foreshadowed by magazine covers and newspaper headlines
that astonishingly and consistently encouraged investors to do the
wrong thing at the wrong time. By monitoring crowd beliefs revealed by
news media headlines - and with the guidance provided by the many
historical examples Futia provides - a trader or investor will be
well-equipped to anticipate and profit from market turning points.
CARL FUTIA is a trader who runs a highly rated
investment/trading blog (carlfutia. blogspot. com). He provides very
specific price forecasts for the stock, bond, and various commodity
markets. Futia's main tools are derived from the theory of contrary
opinion and box theory. He holds a BA in economics from Yale
University, a master's degree in mathematics from the University of
California at Berkeley, and a PhD in mathematical economics from
Berkeley as well. Futia has published several papers in theoretical
economics in scholarly journals.
