Top Web Entrepreneurs Paradox
Author: Claude Jollet

"Trend following" is a strategy normally associated with
trading. You won't see it associated with Top Web
Entrepreneurs. This is surprising. The strategy serves both
types of activities quite well. I intend to set the record
straight with this article!

First, A Bit Of Background

If you lookup "trend following" on Google, it will report that
some 286,000 pages mention the expression. I am willing to bet
that most, if not all, are related to speculative trading.

However, I am also willing to bet that Top Web Entrepreneurs,
whether knowingly or not, use a strategy based on "trend
following" to guide them in their choice of Web endeavors.

Let me explain.

I used to invest my money. That has brought me a certain
significant return. But, it took decades of compounding the
meager crumbs that the banks and other financial institutions
were (reluctantly) giving me in interest.

One day, in 1998, I switched strategy. I became trader. I am
what is known as a "system trader". I have developed a system
to protect myself while trading. My trading is based on a
"trend following strategy".

I'm proud to say that it works remarkably well. For me, that
is. There's a catch, you see. It requires strict adherence to
the a plan: my plan.

My plan, discipline, tight control over emotions, and patience
make up "the name of the game".

What Does "Trend Following Trading" Have To Do With Top Web
Entrepreneurship?

The skills required to become a Top Web entrepreneur are not
much different than the ones a consistently successful trader
uses. Note the use of the word "consistently". Anyone can be a
lucky trader. Many think that Top Web Entrepreneurs were lucky
to find their "niche". Not so. They all worked hard at
identifying it, and at planning how to best exploit it …
sometimes months, or years, before the event makes the news.

Top traders also work hard. Most of their energy goes into
preserving their capital, so that they will always have enough
to trade the next day, and never go broke. They never take
risks! They manage risk. There's a major difference.

So much so, that managing risks is the most important factor
between success and failure, both in trading, and in business.

When the trend becomes newsworthy, it rapidly ceases to be
worthy of exploiting! It is cresting, in it's adult phase,
then. It will soon begin to decline.

Top Web Entrepreneurs, just like Top Traders, plan to get in as
close to the (confirmed) beginning of the trend as possible.
They avoid entry when the trend has already given most people a
good run for their money! The probabilities of cresting are
getting bigger, at that point. They do not want to enter a
trend, just as it is about to decline.

How does one become a successful Web entrepreneur without
taking risks?

By testing your ideas "offline" first!

Successful traders, do their testing outside of the markets.
That use sophisticated computerized systems, either bought
commercially, or home brewed. The very Top traders use home
brewed systems. They feed their system years of historical data
about the stock, or foreign currency they are interested in
trading. The tests are computerized, so they take a few moments
only. In a flash, they know what potential their idea may have
about that given stock or currency. They also know what the
risks are. They can prepare to counter them.

Successful Web entrepreneurs also make use of computers, of
course. But not in the same way. They do not have years of
historical data to test their ideas on. Only uncharted grounds
are potentially ripe to give new types of crops. It's in the
very nature of innovative ideas to not have a history.

Top Web entrepreneurs use sophisticated systems to mine the Web
for the data they need. They develop their own system (around a
strategy), but use the computerized applications that are
available on the Web. Remember, the data they need does not
exist … at least, not as a coherent, filtered set yet. They
have to look for "signs" of it. Then they analyze the signs.
This analysis leads them to retain some pieces of data, and
reject others as irrelevant. Not an easy task at best.

Top Web entrepreneurs will use their brain, and their
experience in a given field of interest, to analyze what they
find.

Their imagination gave them a business idea. They will
carefully validate it, plan for it, and time their move into
implementation.

They are like top competition surfers. They know what signs to
look for, and they have the acquired a sense of timing to take
advantage of a "building" wave. They are in there even as the
wave is beginning to form (below the surface and most
everyone's radar). Sometimes, like Top traders, they reach the
"zone", totally concentrated. They are already stalking – and
preparing for – the next profitable wave (trend), in the right
spot, at the right time, before the coveted event even begins
to form!

To get there, Top Web entrepreneurs use sophisticated, flexible
Web searching tools to mine the Web for information. These tools
exist, and are mostly free to use. However, they are scattered,
uncoordinated, about the Web. Sometimes, they only exist as
"beta" applications that only a few enthusiasts know about.

To give you an idea of what "trend stalking" might mean on the
Web, have a look at the "Google Alerts"™, and "Google Trends"™.
Many Web entrepreneurs use them, as general purpose tools, in an
attempt to identify the "trend" they are looking for.

There are dozens of much more specialized and powerful tools
for Web research and analysis available. You just have to try
them until you find the ones that best fit your requirements,
and personality.

When The Signs Are There

When it begins to look like their idea is being confirmed by
enough verifiable signs (note the word verifiable), Top Web
Entrepreneurs will immediately start planning it's
implementation carefully. They will give it a structure that
will later house what they will be offering their targeted
clientele. They will also have identified the latter through
thorough research.

Their Web business is taking shape offline, at that stage. No
risks involved. I hope you get my drift! They make sure their
idea will work, before they commit themselves! That's what
planning is all about.

The First Small Step

If the idea looks viable, they start small. Very small! Just to
give you an idea, I never bet more than one percent – yes, you
have read correctly, never more than 1% of my total equity on
any given trade idea. That's how small a step I am willing to
take at any given time. That should give you a measure of how
careful, patient and disciplined successful trading is. After a
while, if my trade idea works, I will add to my position
progressively. If all the conditions of my trading system
continue to be met, I continue to execute my trading plan … in
a very disciplined way.

When Top Web Entrepreneurs have thoroughly researched and
tested their business idea – offline – they will create the
home page of their Web site, and publish it online.

They will slowly add to their position, from there. Meanwhile,
they keep up their research effort. They watch for signs of
their idea drifting away from the trend they have identified,
and chosen to follow.

In fact, they go wherever their traffic leads them. They will
patiently, and dutifully follow that trend to destination … and
success.

They will publish one – well researched, keyword focused – Web
page at a time. They will slowly furnish the structure they
planned in the first stages of preparation … and thus
progressively increase their "tailor made" offer to their
target clientele.

A New Web Business Is Born!

As you can see, it did not happen suddenly. Nor, was it due to
a stroke of luck.

Top Web Entrepreneurs innovate … and follow trends.

That's the "apparent" paradox.


About The Author: Claude Jollet is a former planning advisor to
major industrial and commercial clients. He specialized in
weather related operational planning issues. He holds a B.Sc.A.
in business process analysis and automation. His Web site
http://www.top-web-entrepreneurs-plan-it.com is devoted to
planning .