Contrarian Investing
The investment style, or investment strategy, we mostly follow is contrarian. Contrarian investing is similar to value investing in many ways. Contrarian investing means investing in ways that go against current popular market sentiment. A contrarian investor sees potential opportunity when a stock appears oversold or overbought. Value investing mainly focuses on buying undervalued stock. However, in addition to buying undervalued stock a contrarian investor may also short stock of an overvalued company.
Some examples of contrarian investing include:
Buying oversold stocks or options
Selling overbought stocks or options
Selling call options on overbought stocks
Selling put options on oversold stocks