The News-Price Delay Myth
Markets don't instantly price news. There's a window of 10-30 seconds after news drops where informed traders gain positions before retail pile in. That window is where money is made.
Stages of News Impact
Breaking news moves through these phases:
- T+0s: News releases, AI systems parse instantly
- T+5s: High-frequency traders place first orders
- T+15s: Retail traders read the headline
- T+60s: Broader market reaction begins
- T+5min: Price stabilizes at new level
Where The Edge Lives
The profit opportunity exists in that T+5s to T+60s window. By the time your brother texts you about good news, the stock has already moved 2-3%.
TradePilot's instant alerts notify you the moment impact is detected, not when you happen to refresh Twitter.
Practical Trading Response
When major news breaks:
- Don't chase the initial spike (too many stop orders)
- Wait for the first pullback (30-90 seconds)
- Enter on weakness with tight stops
- Exit into the next wave of retail buying