When To Quit
Overstaying your welcome
So, there’s this seaside town in the UK called Blackpool.
In its heyday during the 1950’s it was the destination for all the northern Brits with money.
If you owned a restaurant, hotel, or bar there it was like owning a cash machine.
Kerchiing.
Fast forward to today and it’s one of the most deprived towns in the country.
Poverty, crime, drugs, everywhere is run down…
(The theme park probably props up the whole town’s economy.)
Browsing right move revealed this horror for sale…
£110,000 for a 12-bed hotel!
That’s a good month in the DOW or ES for some of you…
https://www.rightmove.co.uk/
Anyway, I’m getting distracted…
The point is this:
If you owned say that hotel in the heyday, you’d be worth a fortune.
That place would be spitting out cash, rooms fully booked, bar till whirring, the unit itself would be worth a load.
You’ve cracked it, cash flow and assets.
But.
If you just overstayed your welcome by a few years you would have lost it all.
A crappy hotel, almost worthless, selling for the cost of the land.
That’s a bit like trading…
A strategy that’s currently killing it, could stop working tomorrow. Your cash machine could suddenly turn into a cash pit.
Sometimes you’ve got to know when to quit and pivot into another trading method.
The same goes for struggling or losing traders.
You might be wasting your time in a market, method, and style that just has no chance of working.
All the resources, time and determination under the sun won’t make that hotel into a thriving business if no one wants to go to the town.
So, if you’ve been putting in the trading effort and getting zero results… it might be time for a change.
It doesn’t mean you’ve given up, but it also means you’re not playing the game on hard mode unnecessarily.
Audit where you are, what progress you’ve made to date, and make a good judgment call.
That call could be to switch things up.
Or that judgment call might be to stick with what you are doing,
Either is ok.
I just don’t want you manning a reception desk of some dump hoping things will come good…
Audio version (kinda) on this podcast episode.