Trading is Easy When You Follow a Proven System
If you are a WTA member, it means you have chosen Pejman Ghadimi and Cal Knight as your teachers and mentors. They both have close to if not more than a DECADE or more of experience trading watches. The course covers their proven methods of how to play this game in a safe, consistent, and efficient way. Unfortunately, things can go wrong when you deviate from this method…
So as a brief recap, here is the PROVEN method you have paid to learn:
As a beginner, you should watch the training twice and take notes. Then, REGARDLESS of your starting capital or network:
On the Buy:
- You target one of the top 10 starter watches at the end of the training. If the watch you’re looking at is not explicitly mentioned in that top 10, you are bending the rules and introducing unnecessary risk. Don’t complain when you can’t sell the watch because you bought the wrong size or color.
- Investigate the market according to the “Dealer Margins” and other related videos in Part 1. You should know what the lowest jeweler listing on the market for a watch is (compare apples to apples), what a jeweler’s bottom sale price would be, and how much further below that you have to buy in order to safely sell for profit AKA target price. NOTE: Target price is often NOT the same price as BCV. If you find yourself stuck because you can’t identify BCV on a watch, you are already going about this the wrong way.
- Reach out to sellers that have given you a reason to believe they are motivated to sell. See if they have bad pictures, bad descriptions, or they explicitly tell you they are desperately in need of money. For your first few trades, messaging every seller or reaching out to jewelers is probably a waste of time.
- Negotiate the desperate seller down to TARGET PRICE. Then commit to buying the watch AFTER vetting the seller and cross-referencing photos of the watch with official photos to identify fakes or asking the Facebook group to help you out. How do you avoid getting scammed? You must “Buy the seller.” This means you investigate WHO is selling you the watch to the point that you can confidently send them money or meet with them in a safe location. Use the resources WTA provides by having the watch shipped overnight fully insured via IFS. Check the resources section of WTA.
On the Sell:
- Take clear photos of the watch that also trigger an emotional response from the buyer.
- List the watch for sale on the plethora of platforms: Ebay, Chrono24, Craigslist, FB marketplace, FB groups, etc. Analyze successful traders like Cal, Parker, Camden and how they present their watches for sale in their listings. Do not copy them but rather get a feel for WHY they took the photos they took and why they wrote the description the way they did and then add your own flare to your listing.
- Accept payment by wire or cash only. Make yourself and the buyer comfortable by exchanging social media, LinkedIn, addresses, providing references or even licenses etc. Only ship the watch a full business day after the wire has gone through. Let the buyer know your process in advance, communicate clearly, and ship the watch out well-packaged. All of this is representative of your character and makes or breaks your reputation in this business.
That’s really all there is to it.
Yes, you can occasionally wholesale, work with jewelers, broker watches etc., but that comes later. The problem is, if you don’t KNOW what target price is and buy at what you were told was a good deal or sounds like a good deal, you are not following the proven system. You should have done the research to KNOW it was a good deal.
If you buy from a fellow WTA member (which is fine if both of you KNOW YOUR NUMBERS), but then immediately try to resell to another WTA member, you are NOT following the proven system.
If you accept paypal as payment from someone you haven’t done business with before or have reason to trust, you are NOT following the proven system. If the brand was never mentioned in the training…you guessed it. Any time you deviate from the system you are introducing extra risk and, in some cases, setting yourself up for disaster. Get the idea?
My First Deal Following the System:
I found a Breitling Superocean Heritage I 46mm Blue dial on mesh bracelet (a recommended top 10 watch) for sale from a seller with terrible photos. I found out he never wore it and wanted to get rid of it. I checked previous case studies, searched the FB group for discussions about the watch, and then conducted my market research. I found out where the seller worked, we exchanged social media, and I was able to pick up the watch for $1750 via credit card on chrono24, added an aftermarket $50 Breitling box, and thanks to my photos and description sold the watch locally for $2700 cash within 19 days. A $900 or 50% ROI deal on my first trade. To be transparent, a more typical sell price for that combo would be around $2300. A more typical profit margin in watch trading is 15-25%. But even at $2300 I would have made close to 30% ROI. The point remains, I followed the system and it worked!
If you’ve ever read PJ’s book, Third Circle Theory, the “second circle” is Mastery of Society. Essentially, you must master the game according to the rules of society before you can become independent of society. Similarly, you can get creative, and experiment with new watches and strategies only AFTER you have demonstrated you can consistently follow the system PJ and Cal have taught you. After you become an advanced trader, you’ll know whether or not an occasional extra risk is worth taking and have EARNED the right to bend the rules a little. Until then, stick to the system EXACTLY as it has been taught to you and watch trading can be safe, stress-free, and consistently profitable.
I’m a relatively new trader, but I am good at putting my ego aside and following the rules until I have earned the right to break them.
I’ll leave you with this,
It is because I follow the rules that when this pandemic hit a couple months ago and I had my money tied up in inventory, at NO POINT did I consider panic selling. I knew I had picked the right watches at the right price and was working to sell them the right way. They sold and I made my money. If you bend or break the rules of the proven method, you are by definition NOT following the proven method and deserve every misfortune that comes your way. What other system makes it so that you can consistently make profits while the world burns? You really have to ask yourself, as a beginner, why you would you even want to deviate from such a robust system in the first place?