Trading Wisdom from a Failed Coffee Shop
What Overcomplication and Unrealistic Expectations Teach Traders
So, I’m a capitalist through and through, I love the markets, trading, and appreciate good businesses even if they are not trading-related.
Perhaps you’re the same?
Lessons from the business world almost always apply to trading…
Anyway, I stumbled across a video on YouTube, it’s called:
“What I Learned From My Failed Coffee Shop”
It’s one guy, Charlie sharing the lessons from his failed coffee shop venture. And honestly, the parallels to trading are uncanny.
PLANNING
Firstly, my hat goes off to anyone having a go at building something they love, whether it’s trading, trying to build the next unicorn, or opening a small coffee shop.
Most never even try… so, respect to this guy for taking a swing, and sharing his lessons with the world.
But his attempt was overflowing with mistakes… many of which I think were avoidable.
Just like in trading, success depends on objectivity and making clear, focused decisions.
Here’s the video, take a watch, and see if you agree with my take on his mistakes:
LESSONS AND MISTAKES
Mistake #1: Not enough money or time
Charlie lasted three months before throwing in the towel.
That’s nowhere near enough time to learn the business, spread the word, and establish a brand in the community.
Maybe he thought he’d be crushing it from day one.
Trading isn’t much different.
It’s tempting to think that textbook tactics will instantly unlock profits, but we both know that’s not true.
You need to give yourself time to learn, grow, adapt, and become great.
Expecting to make it work in 3 months is just naive.
Mistake #2: Overcomplicating things
Charlie loves his coffee, he nerds out on it. Fancy machines, different settings, perfect blends, adjusting for humidity…
If you went to his house you’d get a proper decent cup!
But that’s not what people want…
He was overcomplicating it.
Starbucks and Costa sell pretty average coffee but it’s quick, readily available, and decent enough.
Your average coffee drinker doesn’t care enough.
He built his business around making the best coffee in a small village… in the middle of nowhere.
You know where the parallel with trading is here, don’t you?
Do what works.
“Keep it simple stupid” – Peter Daniel
Price action. Supply and demand. Momentum. Mean reversion.
Done.
Mistake #3 Saying one thing and doing another
Charlie said he wanted to create a community, a place to come and enjoy great coffee.
Yet he had hardly anywhere to sit. His shop was pretty grubby looking, and by his own admission, was freezing!
Not very inviting.
The same goes for trading.
You can tell yourself:
“I must keep a journal, I must run through checklists, I must stick to the plan.”
But if you don’t actually do it, what’s the point?
Anyway, that’s my take on it, do you agree?
Some of the best trading lessons come from completely different areas: sports, art, politics, and business. It’s all about observing and reframing.