Exploiting The Herd Mentality
The biggest fortunes on Wall Street and the futures markets are made by individuals who know how to exploit the herd mentality of the marketplace. These people are known as contrarians, but being a contrarian is only one part of the puzzle. It is also critical to have a specific trading strategy to exploit the markets and a trading methodology that works in all markets.
–Larry Connors and Blake E. Hayward, from Investment Secrets of a Hedge Fund Manager (1995, Irwin Professional Publishing, Chicago).