A contrarian is an individual or investor who adopts a strategy that goes against the prevailing market sentiment or consensus. Contrarians believe that the majority of investors are often wrong about the direction of markets, and they seek to profit by taking positions that are contrary to popular opinion. In other words, contrarians often buy assets when others are selling and sell when others are buying.

Key characteristics of contrarian investing include:

1. **Going Against the Crowd:** Contrarians deliberately take positions that are opposite to the prevailing market sentiment. If the majority of investors are optimistic and buying, contrarians may become more cautious or take a bearish stance. Conversely, if there is widespread pessimism and selling, contrarians may see it as an opportunity to buy.

2. **Independent Thinking:** Contrarians tend to rely on their independent analysis and research rather than following the crowd. They may be skeptical of popular trends and fads, preferring to base their decisions on fundamental analysis, valuation metrics, and other factors that might be overlooked by the broader market.

3. **Long-Term Perspective:** Contrarian investors often have a long-term perspective. They are willing to withstand short-term market fluctuations and volatility, believing that over time, the market will recognize the true value of an investment.

4. **Value Investing Principles:** Contrarian strategies often align with value investing principles. Contrarians look for assets that are undervalued or overvalued by the market, aiming to buy low and sell high.

5. **Risk Management:** While contrarians are willing to go against the crowd, they are not blindly contrarian. They still employ risk management strategies to protect their investments and avoid excessive losses.

6. **Diversification:** Contrarians may diversify their portfolios to spread risk across different asset classes or industries. This helps them avoid being overly exposed to the success or failure of a single investment.

It’s important to note that contrarian investing involves risk, and being contrarian does not guarantee success. Markets can be unpredictable, and being contrarian for the sake of it without a solid understanding of the underlying fundamentals can lead to poor investment decisions. Successful contrarian investors combine their independent thinking with thorough research and analysis to identify opportunities that may be overlooked by the broader market.