Power of Delay

One crucial advantage for speculators is to react faster to the big market movement.

Market is not efficient. There are always chain reactions. One wave leads to another. One tier leads to another.
It takes different players different amount of time to react to market.

A good example that I traded this morning is UA and FOSL.

There are a lot of context in play:

*Weak indexes
*Friday before 9/11 plus the warning of attacks
*Weak commodities

*LULU earning and gap down 5% at open
*UA and FOSL small gap down in the morning

I have UA and FOSL short from overnight.  I covered a portion at open.
After FOSL fill the gap, I faded with all my strength.

This is the power of market delay.  It takes time for the different tiers to move, even for the same sectors.
The delay can be one minute or five minutes or 30 minutes, depending on your strategy and time-frame.

The bottom-line is that we need to have a grasp of correlation between the instruments you trade.

This also comes back to the "power of speed and effort" topic I discussed yesterday.

We make effort, and we gain speed, then we can take advantage of the market delay.

This is probably why a good trader on www.trader1688.com named himself "慢两步“ (2 steps slower).
We think ahead of market, plan ahead of market, but we don't rush into the forest when it is dark.
We act one or two steps late, but not too many steps later either.