Chapter 100

Common Arbitrage Mistakes

0 min read

Learning from common errors improves arbitrage success:

Premature Solution Pushing

Trying to sell solutions during peak denial wastes resources and damages relationships.

Nancy aggressively marketed digital transformation to retailers in deep denial. They rejected her advances and remembered her as "doom and gloom" seller when crisis hit. Patient relationship building would have yielded better results.

Over-Engineering Solutions

Creating perfect solutions for denied vulnerabilities often means missing the crisis window.

Paul spent two years building comprehensive vulnerability management platform. By launch, simpler competitors had captured the market with "good enough" solutions delivered when needed.

Extraction Versus Value Creation

Focusing on maximum extraction during crisis damages long-term opportunity.

During acute vulnerability exposure, Oliver charged 10x normal rates for emergency services. While profitable short-term, his reputation for price gouging eliminated future opportunities.

Single Vulnerability Focus

Betting everything on one vulnerability triggering risks missing entirely if denial persists.

Martha built her entire business around retail commercial real estate vulnerability. When government support postponed the reckoning, she lacked alternatives and struggled while diversified competitors thrived.