How Often Does The Market Overreact?

This is a discussion on How Often Does The Market Overreact? within the Forex forums, part of the Markets category; Perhaps confining this question to the most liquid FX market (EUR/USD) might be best, but if someone feels bold and ...

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Old Jan 7, 2018, 1:47pm   #1
Joined Sep 2017
How Often Does The Market Overreact?

Perhaps confining this question to the most liquid FX market (EUR/USD) might be best, but if someone feels bold and confident enough, perhaps they can extend it to: EUR/USD, GBP/USD, USD/JPY and USD/CHF

How often does the market overreact? Let's exclude "slight to moderate overreactions" so that we are only dealing with considerable to extreme overreaction.

I realise that this may not be easy to accurately define... perhaps rating your answer on a scale of Rare, Somewhat Rare, Somewhat Often, Often (please include the market/s you are referring to).


- Gavin
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Old Jan 7, 2018, 2:48pm   #2
FXX
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All the time. The market is irrational and emotional.
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Thanks! The following members like this post: Oscar Reed
Old Jan 7, 2018, 3:09pm   #3
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All the time. The market is irrational and emotional.
Stupid question really now when I think of it
I'm not exactly sure what it is I am trying to get at...leave it with me
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Old Jan 7, 2018, 3:10pm   #4
FXX
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Best thing you can do when thinking how the market will react is to look at it as a person.
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Old Jan 7, 2018, 3:20pm   #5
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Best thing you can do when thinking how the market will react is to look at it as a person.
I have noticed people doing this but I wasn't really sure how to approach it...
I'm trying to be as careful as I can so as not to pick up maladaptive cognitions/behaviours but it's a minefield! And commonly results in me standing there, stumped
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Old Jan 7, 2018, 4:54pm   #6
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It can't overreact and it can't be irrational. The market does what it does, it can only act - it is individual participants who can overreact and who can be irrational.
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Old Feb 7, 2018, 9:18pm   #7
 
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Maybe I will never find an answer to this question. But in truth, that's our purpose of trading - to understand the market.
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Old Feb 7, 2018, 9:36pm   #8
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Well, maybe not the ONLY purpose...........
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Old Feb 15, 2018, 10:57am   #9
 
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there is no purpuse to trading other than to try to make money to get by in this pissy system we live in
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