Just because you can start a new business initiative, doesn’t mean you should.
I have had so so many ideas over the years for kurb and it seems like now I am just getting to the point of asking whether something is worth doing just because it’s a cool idea.
A lot of ideas are cool but they just never happen. The opportunity isn’t there. I often think about what I’d like to make happen. It’s a process of deduction.
We think of ideas that we have the opportunity to make happen, and those improvements we can make that would have the biggest effect in improving our situation.
That’s why the idea of doing auckland video production of children’s pirate stories and forex advice came from. Focusing on key areas where I want to advance my skills and opportunities in a specific project.
These were projects where I saw the opportunity aligning that I could use video to create a platform for something not only that I was good at, but had the opportunities to be viable and to also progress and scale into something that would continue to grow. That is even if the business idea failed to take off or that opportunity wasn’t timed correctly, there would be the aspect of video production where we were also gaining good skills and advancing that also as a viable business opportunity.
It’s all about leveraging what you have into something that creates more value. We could even do auckland dvd duplication or a cd duplication with that content and put it on to DVD’s and make that an additional value item.
But then I was really struck while I was writing here by the relationship between trading and the rest of my business, and although I had my browser crash and lost some writing on the subject that breakthrough idea has stuck.
It came from the thought that not only will it take more effort to make the same money from cd/dvd, pirates, forex investment advice and funds, and video production, but in the months that it would take to breathe life into these businesses – even the pirates which is already viable – I could easily outstrip the earnings with forex profits.
In a new way of seeing the situation, I can suddenly see it as economically sub optimum. By the time we made any effort to businessify these initiatives, which would be slow anyway because of trading, within months my trading is gushing out cash and charging $400 for a pirate show or $50 for a forex consultation is ridiculous because I’ve moved too swiftly beyond that paradigm.
So at this point we have to identify that these are not being pushed towards profit driven outcomes.
In the past we had already recognised that kurb could become a front – perhaps even a PR front – because my earnings in trading allow these other aspects of the business – cd/dvd duplication, posters, pirate stories, forex investment and advice as a service, and video production – to function despite the fact that they are not viable businesses.
They are vanity projects.They are not businesses. I already said that it was more branding than anything else but rather than being part branding part business, now I accept, it is merely branding that is able to deliver a service but exist mainly as branding because trading has a boring vibe – not only projecting the reality of the image of what I do as a trader, but also the actual trading which aside from making lots of money, is pretty boring and unglamourous watching numbers go up and down.
As a business it’s not real. That doesn’t mean it has no purpose or value, not at all. It just means seeing it as operations and not as branding and PR is flawed because you waste focus and energy trying to make it viable when that is not required.
I could spend months trying to lift my pirate thing or the forex up to a more viable level. It might be profitable and grow long term. But at the same time my earnings from trading could balloon out making any effort here a waste of time because there’s only so much ballooning I can do before it becomes pointless to operate as a business. I am not somehow who desires limitless wealth.
My desire in these business areas is about making a project happen and being excited about providing services and the work and skills that go into that.
Which is totally acceptable. It’s just you can have the wrong focus if you see it as a profit exercise. The whole project becomes easier to manage once you see that profitability isn’t the required outcome.
Following this thought, I am thinking seriously about dialling back the cd dvd duplication business simply because currency trading is taking up so much of my focus, I’m finding maintaing the dvd cd copying just so stressful, maintaining the equipment, dealing with the clients. I do want to keep it going, but not in any circumstances where it’s causing me stress because I really take my commitment to making sure work is done for my clients very seriously and it causes me a lot of stress when I’m so focused on my trading and I’m also selling property and dealing with some legal issues.
What I like about this cd duplication work is that you can go to work problem solving and when you figure out the solution, you can go into production and make a lot of progress – when I’m rerunning a job of 500 DVD’s for a regular client, I’m making $400+ in a few hours that’s good living. I enjoy the productivity and the feeling of accomplishment, getting the job done and getting paid for good work.
But the business needs more attention. It needs money spent on equipment.
And I can’t make that commitment while I’m focused on trading, and soon, the return on my investment into trading will start to outpace my business and then it becomes a waste of time to spend my time working on duplication or printing jobs rather than trading.
When my trading profit grows so that I can pull back my intensity, then I can look at where I am at with the business. It is not sensible to shut the door in any case, but I do feel I owe the last incarnation of my business a grace period whereby it is not strangled to death, put is put out to pasture so to speak. I may not do too many DVD’s in a few years but while I’m in the country I’ll still front up even if the level of service doesn’t keep up.
My issue was the concern I will miss that income.
But now I see the income is not the issue, it is very liberating.
I am now beginning to take a look at the full picture of our forex trading and what it could look like.
Basically right now, my equity is shaking out so I am able to put more money back on the table. I can also see that there are parts of the range od EURUSD, EURGBP, AUDUSD and AUDGBP that we are just never going to go back to for at least a year and it may aswell not even be part of anything, that part of the range will simply site their as $20k loss I can’t get back for a year or two, but as our game moves on, it will slowly be dwarfed, or, due to our hedging, simply out weighted.
The technique is working so well. But the hard part is picking bottoms!
When I’m doing well, new ideas are jumping up in my head. My theory is that when you’re on trend you can ride down and milk it all the way – until it bottoms. When do you pick the bottom?
To me, pulling out too early is the mistake that just has to be made, and if the sucker rolls through your hedge and out the other side, then you have to take the pain. We are still in the stages of being able to lather enough equity up to take that pain, so it can then withdraw, and our equity rise. The first time we hedged up, it was because we had to. The euro blew through 1.10 and we were having to prepare for parity. The only thing we could do was hedge.
As our equity builds, we become more able to withstand a deep roll through on a trimmed back hedge so letting the hedge ease out so that you can reclaim your equity when the trend bottoms is only something you can do once you become more established and is more of a macro strategic technique for winning back your equity.
Until then you are forced to use the hedge to survive.