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Friday, July 13, 2007

Practical Approach to Forex(Tutorial- Part V)

Friday, July 13, 2007


So then, as things unfolded, around two and a half years later, I graduated high school. Most of my peers went to college, but considering the situation I was in, college didn’t make any sense to me. I was making more money than I could ever make having a phD. So I stayed an uneducated schmuck :) I still got some college life action, because I was visiting some of my friends in their dorms in college, and actually had a lot more fun than them, because I had money, and I didn’t have to worry about doing homework and learn boring and sometimes useless things.

Again, I was kind of dumb, naïve, and practical in my business approaches, kind of like Forrest Gump in that movie. I remember one day, I went to buy some boxing gloves for myself, and I’ve been boxing since I was a kid, so I knew quite a bit about the sport. And at that time, the cheapest vinyl boxing gloves you could find cost $40. So I remember looking at a boxing glove, and thinking to myself of how cheap it must be to produce them. All it is; is a piece of vinyl, some foam, and stitches. And I remember thinking to myself of how much profit is being made on these things. So I set out to find some cheap manufacturers of boxing gloves, and I found factories in Pakistan, that were literally selling some of these 10 to 16 oz boxing gloves for around 80 cents per pair, and they had some direct representatives in Los Angeles, that I could buy these boxing gloves for $1.50 per pair. They were selling empty heavy bags for $5.75, while they were selling in sports stores for several hundred dollars. So I saw a huge opportunity in this, and I started listing these boxing gloves for $19.99 on ebay, and started selling them. I was selling empty heavy bags for $49.99. Then I decided that it was too much hassle trying to sell individually, so I started creating sets, with several pairs of boxing gloves, and several head gears, coaching gloves, heavy bags, speed bags, et cetera. It cost me $20 or $30 to create a set, and I would sell it for well over $100 dollars. And people were buying the stuff like hot cakes. Comparing to prices in regular sports stores, the value was literally “stupid”. Then I started selling the stuff by cases, then I started attending trade shows, and selling the stuff to small and medium size private sports stores. I even went all the way to pitching the stuff to the Big 5 Super Stores. I imported and bought locally containers of this boxing equipment, and believe it or not, but I changed the industry. I honestly believe that through the massive numbers of these things that I sold through ebay, and through trade shows, some big boxing manufacturers actually moved their production to Pakistan, and a bunch of smaller brands sprang out, offering their boxing goods a lot cheaper in sports stores, and you can even see now nicely packaged sets being sold in some sports stores :) Selling sets was simply non-existent before I introduced that idea for the first time. It’s fun to think about these things, but all I did was trying to make a buck, and created these changes in the industry, by a total accident, similar to Forrest Gump in that movie.

You may ask, what does this have to do with forex, Felix? You wait, and you will see… It’s all about who I am, and my practical approaches to life. You have to read my story, and understand it fully, in order to fully appreciate the thinking behind my trading system and my trading style. And you have to understand my super practical and kind of dumb approach to life, in order to understand why I literally bash most of conventional trading systems and approaches, and why I talk shit about most forex gurus and educators. Most educators are not practically logical and simple enough. Most of the technical analysis being taught is too complicated, and it doesn't make any practical sense.

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