Fading the wrongway crowd

Discussion in 'Psychology' started by a529612, Jul 23, 2006.

  1. Which famous trader gave this quote?

    "Crowd is right in the middle but wrong at both ends."
  2. Joe Kennedy? Jesse Livermore? John D. Rockefeller? Bernard Baruch? I think it was one of those 1930's guys.
  3. Google:

    Another legendary contrarian was Humphrey B. Neill whose book “The Art of Contrary Thinking”, published in 1954, helped popularise this strategy for investment. He too observed that “when everyone thinks alike, everyone is likely to be wrong”, and promoted the practice of “throwing your mind into directions which are opposite to the obvious”.

    Neill provided much practical advice on how, and importantly when, to apply contrary thinking. He was happy to admit that the public is right more of the time than not and concluded that “the crowd is right during the trends but wrong at both ends”.