In the quest to get rich quickly, capital markets often become very attractive for many individuals. Many newcomers have a success story in mind, in which they have assigned the hero role to themselves. Unfortunately, the reality is different: many individuals leave the stock market with a lot of disappointment after realising big losses. Nevertheless, capital markets remain full of excitement and full of adventure, but above all, they are the best teacher one can find if one is persistent and adaptive enough. Beginners enter the market greedy for money, success, and recognition. Most people leave the markets disillusioned and with the wrong conclusions, without getting anything in return for their apprenticeship money (losses). The range of the market psychology cycle between euphoria and the emotional apocalypse is the same for everyone. Those who work on themselves in the process can successfully pursue the profession of trader or full-time investor. The vast majority of market participants who are part-time will never be able to fully exploit the market and risk-reward opportunities in their favor. ONE-SIGNAL was designed for these people.
Warren Buffett put it best: “Be fearful when others are greedy, and greedy when others are fearful.” This philosophy sits at the core of value investing. Many who follow this approach consider themselves contrarians. They focus on uncovering the intrinsic value of a stock—buying when the market price is at or below that value, and selling when it exceeds it. Often, they seek out companies with solid fundamentals, such as a low price-to-earnings (P/E) or price-to-book (P/B) ratio, or attractive dividend yields. Their goal is clear: buy companies that are overlooked and wait for the market to recognize their worth.
But here’s the irony—while many of these investors claim to go against the crowd, in reality, they often follow the same patterns. As more investors adopt this strategy, a new form of herd behavior can emerge.
So what makes someone a true contrarian?
Being a contrarian is less about following a specific strategy and more about cultivating a mindset. It’s rooted in independent thinking—questioning trends when others blindly follow them. When the market moves in one direction, the true contrarian pauses to ask: Does this really make sense?
Contrarians aren’t necessarily outsiders. They can be part of the system but are willing to break away when logic and analysis point elsewhere. They’re bold enough to stand alone but wise enough to know when to pivot. It’s a mix of bravery, discipline, and adaptability.
Sentiment indicators: the true contrarian’s compass
For genuine contrarians, sentiment indicators are often the most valuable tools. While technical and fundamental analysis focus on what has happened or what should happen, sentiment tells us what people believe is happening—and how they’re acting on those beliefs. This distinction is crucial.
True contrarian investors don’t just look at numbers—they look at people. They observe crowd psychology and use it to spot irrational exuberance or fear. When the majority is euphoric, a contrarian questions the sustainability. When panic takes over, they see potential. That’s where sentiment indicators come in.
Unlike opinions voiced in media or casual predictions, sentiment indicators capture positioning that’s backed by real money. They quantify investor mood and behavior, providing a window into the emotional state of the market—and that’s where the edge lies.
Here are three key types of sentiment indicators:
By watching these indicators, contrarian investors identify when sentiment is stretched—when the herd is too confident or too afraid—and act accordingly. It’s not about rebelling for the sake of it. It’s about knowing when the market is lying to itself.
Sentiment Indicators: At the Core of ONE-SIGNAL’s Contrarian Edge
At ONE-SIGNAL, we don’t just follow price charts or company fundamentals—we go deeper. Our entire approach is rooted in understanding the behavior of the market itself, using sentiment indicators and following the contrarian investing strategy.
While most investors chase performance or follow trends, we focus on sentiment—on identifying where the crowd is heading and why. At ONE-SIGNAL, we track sentiment trends closely, using tools like the put/call ratio, the VIX, and sentiment surveys to understand market psychology in real time.
Rather than blindly betting against the crowd, we follow sentiment trends strategically, aligning with market momentum when it makes sense—and pivoting early when indicators show a shift is coming. This approach allows us not only to capture upside potential, but also to capitalize on downward trends—positioning our users ahead of the curve, whether fear or greed is in the driver’s seat.
This is smarter trading.
This table represents the historical highs of various speculation instruments worldwide of a time period of 400 years. It demonstrates very clearly that bear markets always followed historical highs. These downward trends were caused by market participants’ fear of loss, which led them to sell their instruments and therefore cause the bear markets.
When quickly skimming the Internet, one notices that there are countless trading signal providers. In fact, for the latter, the aim is often to overwhelm subscribers with advertising and / or sell seminars, books and lectures, as opposed to offering accurate trading signals. We are an owner-operated and therefore independent company, our success therefore fully depends on our clientos success.
Founder and mastermind – Ara Yalmanian – has been regularly trading based on ONE-SIGNAL’s principles for over 15 years. At ONE-SIGNAL, we continuously track and refine our trading signals to maximize accuracy and effectiveness. Our advantages speak for themselves: Between 2010 and 2024, ONE-SIGNAL's SPX solution generated 38% average yearly returns, outperforming the S&P 500 Futures’ 9%. With proven results across multiple asset classes, ONE-SIGNAL helps you trade smarter — not harder.
