If you should be a stock trader or investor, then you definitely surely have observed market over reactions in the past. A story breaks, and when you even get to read the very first word of this article the stocks related compared to that story have previously taken huge jumps up or down. I have already been trading stocks for quite a while now, and have observed trends for sure. I thought I'd explain why I believe markets, specially the stock market over over reacts to both good and bad news almost instantly. Be warned that this is simply not something I trade on, as I'm more of a long haul investor/trader, nor should you read too deeply into my reasons. 2 Reason the Market often over shoots it's target on news: #1 The Media Often Overreacts As with any news story, if the media thinks it may gain your viewership by reporting on a one sided basis, they usually will. The media is known for their exaggerations sometimes, and its part of each reporters thinking. Greater the ne