The Power of Being a Contrarian and Why Buying Fear Pays Off

by | Mar 17, 2025

It’s easy to get caught up in the noise when markets are in freefall like we’ve seen the past few weeks. Every headline screams about the next crash, social media is filled with doomsday predictions, and traders who were bullish a week ago suddenly flip bearish.

But here’s the thing — when everyone agrees on a direction, the market is usually about to go the other way.

Fear Creates Opportunity

Heading into the end of last week, the Russell 2000 (IWM) looked to be in a freefall, and small caps were getting crushed under the weight of rising interest rates.

The media is hammering Tesla (TSLA) like Elon Musk personally ran over their dog.

Gold and silver are getting all the hype, which probably means they’re about to top out.

But here’s what people are missing…

If everyone is bearish, who’s left to sell? Everyone who could panic already did. When the selling stops, all that’s left is room for a bounce. And just like that, the same traders who dumped their shares at the lows will start chasing back in at higher prices.

The Market Hates the Obvious Trade

If trading was as simple as following the news, everyone would be rich. But the market isn’t here to make things easy. It punishes traders who move with the herd and rewards those who position before the turn.

The best trades aren’t the ones that feel obvious. They’re the ones that feel uncomfortable. When you’re buying while everyone else is selling, it’s not going to feel good. But that’s exactly when you get the best risk-reward setups.

Does this mean the bottom is in? Not necessarily. But if you wait for the “all clear” sign, you’ll be late to the move. Markets turn when traders least expect it — not when it’s comfortable.

If you want to trade with the crowd, go ahead. Just don’t be surprised when the market flips the script on you.

Order Flow: 

Earnings season is nearly over… if it ever really ends before beginning again. We caught a few orders for stocks reporting this week, including Williams Sonoma (WSM) on Wednesday, Nike (NKE) on Thursday, and Carnival Cruise (CCL) on Friday.

*This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.

There is inherent risk in trading. Trade at your own risk.

Note: If no date is listed after the month, it’s the monthly expiration (third Friday).

The team at Lance Ippolito Trading

Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.

You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito

And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx

Important Note: No one from The TradingPub team or any of its associated brands will ever contact you directly on Telegram.

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

P.S. Is All of the Manipulation Out There Hurting Your Trading? 

The worst part is, you probably don’t even realize it is happening…

But Lance Ippolito has set out to find a new trade structure that helps put the power back in the hands of retail investors…

You Can See It Here

Disclaimer: The profits and performance shown are not typical. We make no future earnings claims, and you may lose money. From 12/10/24 to 2/20/25 the real trade results were a 83.3% win rate and the result from back tested data was an 85.1% win rate, 38% average return (winners and losers combined) with an average hold time of 11 days.

WRITTEN BY<br>Lance Ippolito

WRITTEN BY
Lance Ippolito

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