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Re: AIMster post# 27

Wednesday, 11/17/2010 11:24:07 PM

Wednesday, November 17, 2010 11:24:07 PM

Post# of 292
I think if everyone started using a contrarian system, the markets would have less volatility.

Because I think that is why contrarian systems work so well - when you use them, you are fulfilling the economic role of the speculator, which is to regulate markets by soaking up excess supply (buying when everyone wants to sell) and feeding demand (selling when everyone wants to buy).

So then rebalancing systems would not give big buy and sell signals. Then, the "weak hands" will say the system doesn't work, and they will go back to trading some other system, and then volatility would return smile

So I'm not worried about too many people learning these systems.

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