Wednesday, 13 May 2009

Moving into trading

In the spirit of the last blog banter, I've been looking at things that I haven't done much of in my time, and one thing that hit me was that I've never really spent time playing the trading game.

I'll admit, I've been tempted by the talk of people making billions in weeks through playing the markets, especially as margins are getting tight on production, and it's no longer making enough by itself to fund my ahem... excessive lifestyle.

I promptly took a bit of time off training up Karox to work on my super secret market playing alt (who I created prior to Apocrypha so he had a lot of trade skills already), stuck him in a fairly active market hub along with all of my Tech 2 parts made to date, about 100 million in starting collateral and decided that after that point, he would be completely on his own and not get any funding from outside again, to see if he could be self sustainable in buying/selling things at his base.

Firstly, after a few days I found it a bit pointless in selling my Tech 2 parts in the market hub. If profits were slim back in my quiet area I use, they were almost non existant in the busy hub - people always undercutting each other all the time - I gave that up for a bad idea and instead kept the plan that I'd had all along that Karox would sell his own products in the lower volume, higher profit area - especially as it was possible in the market to sell all of the 10 modules from the blueprint run in minutes if you caught it right as being the lowest value seller, but make maybe 10% of the profit I would have selling a bit slower - and also needing to keep up with demand was going to be difficult.

Instead I used the tried and tested 'resell mission loot' plan where I used the market alt's much greater number of available orders to place speculative buy orders under market value from mission runners, and resell them at full market rate, with around a 10-25% (or higher in some rare cases) markup.

First, let me say that I'm somewhat unimpressed with market trading... I'm probably not doing it optimally but in 3 weeks of trying it, I've only managed to make 150 million in profit. I mean OK, its essentially money for nothing, as I need to just log in for 30 mins a day to play around with market orders, but its still taking ages to fill my market orders, so im just selling 2-3 modules per day of the 100 or more I've placed buy orders for, which is making some ten to hundred thousand ISK profit per sell order I've got up depending how quick the parts resell for.

Now of course, im wondering how to expand on this. I really need to research the optimum drop tables for NPCs from missions in my target region so I know what to buy (anyone know if theres anything out there, or is it just lots of legwork and notepads?) or possibly move out of the module business, and into something more high ticket, such as implant trading.

More info and updates as I get more into playing market games.


Kirith Kodachi said...

Concentrated on large best named weapons and keep reinvesting your profits in more buy orders.

I've heard that larger operation make money faster and some traders insist on having a billion startup cash to make the bug money.

Anonymous said...

T2 modules are fine, I find making a greater amount of differetn types will return you plenty of profit. Sitting aroun dwaiting for ECM multispec IIs to make you a billion isnt the secret i have found. It is doing a little of everything and staying consistent with the hot sellers and being patient with the slower selling items. "E"

greatnate said...

I had a similar experience with my trading alt. I have been considering getting him into a Freighter and just selling him for isk.

Did you ever figure out how to do this more successfully?

Karox Lominax said...

As it happens, I've just kept it ticking over a bit, not doing masses of trading, just buying and reselling mission drop items mainly.

Theres ways to do it more actively, which involves buying items and then relisting them at a higher price (i.e. buy out a region or small radius of orders of a certain item and relist them at 20% higher price or so, with a view that everyone eventually relists at that price, and you can sell the things you bought at a higher rate than you bought them at, but at lower than market rate)

Basically, youve got to speculate to accumulate I guess :)