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Thursday, 28 June 2012

June business report

Posted on 22:00 by Unknown
My last business report wasn't the happiest post on the blog. The linear and quadratic fit of my wealth vs time graph barely differed. While 508M/day average income wasn't bad, reaching some daily limit was scary: it would mean that you can't really make big money using your capital. You can only farm, turning time into ISK, and even if trading pays better than ratting (like 300M/hour), it's still just another grind.

However I merely reached the limits of the skillbook hauling I did back then. One of the reasons of rigorous bookkeeping is forcing you to move on. Without those charts I'd probably ran around with the same books watching my wealth grow, being satisfied by being more rich than most. But after seeing that it's nearly linear, I tossed my proven and reliable method and tried something that could end up in large loss. Well, it didn't. The wealth increase of the last month was 40.8B, 1.36B/day, about 450M/active play hour. No, I'm not satisfied. But it's definitely looking better:
The difference between the linear and quadratic fit is obvious and the latter fits to the data well, both visually, and according to the R2 of the fit. I'd like to emphasize how important this non-linearity is. It proves that trading isn't just the "most profitable grind", but it's providing capital-limited investment profit. The more money I have, the more I make without increasing time spent making money.

Now let's see what the fitted curves says about the future:
This chart runs until 2013. Feb. 16, my first birthday. According to this, I have a serious chance to be a trillionaire before that. I'll surely have - even according to the linear fit - money for not one, but two titans. Maybe I should start a titan sitter for my backup titan. After all in EVE you shall have a spare ship to be able to return battle instantly if your first ship blows up.

However the most inspirational chart is the one that displays the logarithm of my wealth vs time:
The results can be well fitted with a linear trendline. That means that the growth is actually not quadratic but - as it should be with investments - exponential with the growth factor of e0.0276x = 1.028x. 2.8% daily profit. That's 129% monthly increase or in other words I double my capital in every 25 days. Of course this won't stay this way as I'll soon stop being capital limited, but it's still a nice proof that trading is indeed investment and not farming.

I hope that these clearly prove the power in trading and make those of you who consider ISK-making a grind to switch to it from ratting, mining, missioning. Of course, if you like those ways, you shouldn't! You can significantly increase their income by re-investing money into more accounts doing it. It will never be like trading, but will be OK. If you are convinced and want to start getting your titan before the end of the year, join the goblinworks channel to get your questions answered. The business I currently use will be disclosed in my July 15 "blogging my profit away" post in full detail. Until then some hints: small but expensive items traded in all hubs, daily turnover, total gank safety (hauling is done by collateraled contracts).


Friday morning report (not included to the charts above): 70.4B (1.5B spent on main accounts, 1.1 spent on Logi, 1.0 on Titan, 0.5 on Rorqual, 0.9 on Nyx)
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