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Your statement rests on the assumption that taking a week to make trades where there is a non-market-maker buyer is worse because the market "might" move down.
by jerkstate 10y ago
Your statement rests on the assumption that taking a week to make trades where there is a non-market-maker buyer is worse because the market "might" move down. The market "might" also move up (and if it's true that the market moves up over time, that's more likely). I don't think you've made a strong argument. What you're calling efficiency is actually expedience, because more work must be expended to achieve the same result, but the work happens in a shorter time-frame.
- slededit 10y agoYou make trades based upon the information available at the time. If your information says market X will move down and Y will move up - you want your trade completed before that happens. Any changes between the time the decision is made and when the trades are executed are referred to as slip. Assuming you're original trade decision was correct this slip will be against you.