Opinion Piece: Fade the Faders?

So there’s this trend on FinTwit that I find fascinating and want to spend a few minutes talking about. I’m not sure exactly how it started, but recently it seems like there’s a lot of traders (big & small, retail & institutional) that really like fading the crowd and taking contrarian positions. I’ve even watched some traders that I respect repeatedly post Twitter polls to gauge sentiment with the explicit intent of fading whatever the predominant sentiment is. Some even boast about their contrarian positions, attempting to make others feel like inferior traders because they are trading with the current trend or not attempting to call the top/bottom of a market. This is very amusing to me. What can we learn from this behavior? I’m admittedly speculating, but I think we can learn a couple things:

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