Wow Tech Support

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Wednesday, 14 March 2012

The three limits of trading

Posted on 23:00 by Unknown
No tree grows to the sky, no way of trading is without limits. To maximize your income, you shall be aware of the limits of your activities, so you can switch to another type which still have room.

The first limit is time. The most typical time limited activities are mining and mission running. You can make X million by mining an hour, so you can make 2X in two hours. If you mine 25 hours a day, you get 25X million every day. Oh wait!

The second limit is demand. I make about 1.1 million over every Logistics book I sell, so to be a billionaire overnight, all I have to do is run up and down in the galaxy buying books and listing 1000 pieces in Jita. Except they won't sell in a month. While items can travel trough many hands, traders, haulers and manufacturers can do their thing on it, at the end it must reach the consumer. And people can't consume in infinite amounts. Selling more than they buy is simply making your capital sitting there. You can figure out the demand from the price history graph:


The third limit is capital. You have to buy the item (or its materials) spending cash. Actually you have to spend 24-100% of the cash (depending on margin trading skill) when you set up the buy order. You will not see this cash back until you actually sell the item. So you can't just buy up everything that looks to be profitable to sell, you simply can't afford that.

What to do?
  1. Do the demand limited trades. They usually don't take too long, you have your usual restocking ways, you just grab some materials and sell it. Usually these operations are the most profitable, so don't miss them by spending your time on something else.
  2. Secondly, calculate the material costs of the time-limited activities. For example you'll run missions and you buy implants for LP+little cash to sell them for big cash. Calculate how much "little cash" you'll need.
  3. Spend the rest of your cash on the capital-intensive ventures, haul them to the trade hub and list them.
  4. Only after these start doing the time-limited activity.
Obviously if any of your activities has lower ISK/hour than your time-limited one, you shall terminate it instantly, it's stupid to keep your capital in something that pays less than your fallback activity.


PS: quick business report, 1.36B (0.5B gifts)

I understand that people don't want to do jumps to buy a book 70K cheaper. It's just economical to pay a little premium to me for bringing it to Jita. But the moron of the day did not buy one book. He needed 43 (maybe more from other sellers, I had no more to sell). So he bought mine. Not the ones sold by the NPCs 43*70K = 3M cheaper two jumps away:

Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest
Posted in ISK | No comments
Newer Post Older Post Home

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • Suffer mortals, as your pathetic password betrays you!
    One of the things we often don't put much thought into is password selection. Usually it is a loved-one's name or an easily remembe...
  • (I'm not) defining lowsec
    This is a rather short post, will be one more today, about my very first PvP action. Sugar reminded me of a problem that I read about a l...
  • The big EVE trick
    What is an easy game: where everyone can achieve what he wants easily. What is a hard game: where you can only advance by becoming better an...
  • You must station trade what you haul
    Well, actually you don't if you are fine with hauling for buy orders. This case you lose serious profit. If you are the station trader o...
  • The (total lack of) balance of trade of highsec
    The fact that you can be much more rich in highsec than in the competitive areas of EVE (low, null, WH) is one of my main messages. It can b...
  • Thinking about highsec POCOs
    In the next EVE patch, Rubicon, highsec customs offices will be capturable by players (actually you destroy and build your own, but it's...
  • What would happen if people could trade?
    The question of mirror-ability of strategies often comes up when I post my trading strategy. The 0.01 strategy is clearly mirror-able. If th...
  • October ganking report
    October was a great month for my corporation , We Gank Because We Care. You can see the results on the killboard but since October was 31 d...
  • The proper profit metric
    Live moron of the weekend post . Did they spent the last month under a rock? People having trouble making ISK with trading. Some rather go m...
  • ur a kid!
    The title is a troll comment I get often. It doesn't make much sense. It's clearly not an argument. While we know that socials don...

Categories

  • account
  • account theft
  • adobe
  • alpha
  • arena tournament
  • authenticator
  • authenticators
  • battle.net
  • beta
  • blizzard
  • brute force
  • cataclysm
  • diablo 3 phishing scam
  • dictionary attack
  • drive-by
  • email
  • fake
  • flash
  • game
  • Gold
  • guild
  • gumblar
  • hacked
  • hacking
  • hacks
  • Ideas
  • ISK
  • keylogger
  • march
  • mmo-champion
  • New
  • password
  • password stealing
  • patching
  • phishing
  • raiding
  • Random
  • ranks
  • remote auction house
  • scam
  • scams
  • security
  • security checklist
  • soccer
  • strong password
  • trojan
  • vulnerability
  • warcraft
  • wow
  • wowarmory
  • wowmatrix

Blog Archive

  • ►  2013 (242)
    • ►  November (15)
    • ►  October (25)
    • ►  September (24)
    • ►  August (21)
    • ►  July (24)
    • ►  June (22)
    • ►  May (22)
    • ►  April (22)
    • ►  March (20)
    • ►  February (21)
    • ►  January (26)
  • ▼  2012 (261)
    • ►  December (24)
    • ►  November (21)
    • ►  October (24)
    • ►  September (21)
    • ►  August (26)
    • ►  July (25)
    • ►  June (20)
    • ►  May (25)
    • ►  April (23)
    • ▼  March (23)
      • "EVE lacks stories and humor" (and morons)
      • The singing ransom
      • MMO Economies use bartering
      • To Frog or not to Frog
      • ISK buyers are boosted Arthasdklols
      • Play for ego
      • Hell, it's about time
      • The lack of new blood in EVE
      • Producing crap
      • Friendly helpful ppl yay!
      • The bright future of mining
      • Bag them and tag them
      • Oh noes we must produce all that we spend!
      • The three limits of trading
      • With more experience they get ... worse
      • Goodbye WoW endgame!
      • Carebears and bots walk hand in hand
      • The millionaire next door (and a long CSM7 PS)
      • Ships and remaps
      • Be poor, accept that buy order (or give it up to 0...
      • Griefer-safe EVE life
      • Hauling shinies
      • Fly Badgers!
    • ►  February (23)
    • ►  January (6)
  • ►  2011 (4)
    • ►  September (1)
    • ►  April (1)
    • ►  March (1)
    • ►  January (1)
  • ►  2010 (17)
    • ►  November (1)
    • ►  September (2)
    • ►  August (1)
    • ►  July (1)
    • ►  June (2)
    • ►  May (2)
    • ►  April (1)
    • ►  March (2)
    • ►  February (2)
    • ►  January (3)
  • ►  2009 (4)
    • ►  December (1)
    • ►  October (1)
    • ►  September (1)
    • ►  July (1)
Powered by Blogger.

About Me

Unknown
View my complete profile