The important practical value of Soros' investment theory lies in its use of the theory of contrarianism to identify overreactive markets, following the process of market formation, from self-propelled strengthening to decay,
Soros' theory of interactions only provides him with the direction of his investment objectives and the means to seize potential opportunities, not the precise orientation or the timing of important turns.
The unstable state of the market has been the ground on which Soros has tested his theory of contrarianism, arguing that financial markets are volatile and disorderly.
Most investors are in and out of the stock market as frequently as bees picking flowers, but they fall into losses that they cannot extricate themselves from, even somewhat inexplicably.
