Tuesday, March 3, 2009

Time matters

Have you ever read The Sound and the Fury? I had to read it in high school, but I didn't really get it. I don't think I even fully read it. It's supposed to be good, and more importantly the book focuses a lot on time. There's a character named Jason Compton who tries to play the stock market. It doesn't work out for him because he'll get a hot tip, but by the time he can make a purchase it's too late. The stock he wants to buy already passes it's local extrema (it's local peak) by the time he gets it.

It's almost like Jason was born in the wrong time. His entire stock trick could actually work in today's world. Through a computer or a broker it's possible to make a transaction in minutes. There are even people with connections to the market that are so fast they can make a trade in less than 1/1ooth of a second. rather than need a hot tip people just need to be able to click fast enough when the arrow turns green and then click fast enough when it turns red.

Now it's not about making things happen as instantaneous as possible, it's about making the instantaneous action at the right time.