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 there are more than one 0.01-ers, then their income will be shared according to their camping strength, but the sum of their income does not change, since it's defined as the price (which they don't change) multiplied by volume.
The undercutter grabs bigger share by increasing volume. However the question rises: what will happen if two undercutters meet. The practical answer isn't interesting: "one of them will be unsatisfied by the profit and moves away". The interesting part comes if we assume that there aren't more niches than traders. Currently this is highly academic as there are very few undercutting traders and many niches. But what will happen if the smell of 2-3 PLEX/day lure more people to my blog (or they learn economics on their own) and the amount of undercutters grow to the point that you can't go to any untaken niche?
Well, the practical answer (the one that wasn't interesting) is still true: "one of them will be unsatisfied by the profit and moves away". Where? There aren't more niches! Aanywhere he can, probably farming.
If we add up the above, we get the result: if all niches are covered by undercutters, the profit of trading is nearly equal to the income of farming, since the only place a quitting trader can go is farming. It will never be exactly equal as trading needs capital, so not all farmers can go trade while all traders can go farm, but it will be near enough.
This is indeed what the moron letters scream: "you ruin the profit for all of us". Yes I do. 0.01-ing is cartel and cartel is the only way to allow more than one trader to have profit in the same field.
Maybe the 0.01-ers aren't simply dumb. Maybe they are socials. They do the "moral" thing and share the wealth with their peers. I'm not social. I can't care less if I destroy all trading profit and force everyone (including myself) into farmerhood. Till the moment it happens, I'll make more money than any 0.01-er, so I'm not being selfless, protecting the little guys from the evil capitalists. I protect the little guys from the evil capitalists because it pays well.
This result exceeds EVE or WoW or any other game. It's a universal economic result: if everyone could trade, no one would have extra profit. So if you want to stop the 1% from having 99%, the best way is to join them.
What will I do if it really happens and no one will make profit without actually having to do something useful? I already have plan B.
This was close!
Another screenshot from nullsec life: our enemy -A- almost saved their system by destroying our SBU. An allied fleet drove them away when the SBU was deep in armor. On the picture you can see us repairing.
One more picture. You read about the supercap battle at LGK?
Finally the moron of the day! While people can lose ships without their own fault in a battle or well designed trap, having your ship terribly fitted has no excuse. Look at this mining barge and despair on the lack of brain (for newbies: lack of cyno, lack of tank, too many MLUs, too small cargohold, rigs don't help mining or surviving).
Wednesday morning report: 168.7B (5.5 spent on main accounts, 5.8+0.7 spent on Logi/Carrier, 3.2 on Ragnarok, 2.7 on Rorqual, 2.4+0.4 on Nyx, 2.8 on Dread, 37.4 sent as gift)
The undercutter grabs bigger share by increasing volume. However the question rises: what will happen if two undercutters meet. The practical answer isn't interesting: "one of them will be unsatisfied by the profit and moves away". The interesting part comes if we assume that there aren't more niches than traders. Currently this is highly academic as there are very few undercutting traders and many niches. But what will happen if the smell of 2-3 PLEX/day lure more people to my blog (or they learn economics on their own) and the amount of undercutters grow to the point that you can't go to any untaken niche?
Well, the practical answer (the one that wasn't interesting) is still true: "one of them will be unsatisfied by the profit and moves away". Where? There aren't more niches! Aanywhere he can, probably farming.
If we add up the above, we get the result: if all niches are covered by undercutters, the profit of trading is nearly equal to the income of farming, since the only place a quitting trader can go is farming. It will never be exactly equal as trading needs capital, so not all farmers can go trade while all traders can go farm, but it will be near enough.
This is indeed what the moron letters scream: "you ruin the profit for all of us". Yes I do. 0.01-ing is cartel and cartel is the only way to allow more than one trader to have profit in the same field.
Maybe the 0.01-ers aren't simply dumb. Maybe they are socials. They do the "moral" thing and share the wealth with their peers. I'm not social. I can't care less if I destroy all trading profit and force everyone (including myself) into farmerhood. Till the moment it happens, I'll make more money than any 0.01-er, so I'm not being selfless, protecting the little guys from the evil capitalists. I protect the little guys from the evil capitalists because it pays well.
This result exceeds EVE or WoW or any other game. It's a universal economic result: if everyone could trade, no one would have extra profit. So if you want to stop the 1% from having 99%, the best way is to join them.
What will I do if it really happens and no one will make profit without actually having to do something useful? I already have plan B.
This was close!
Another screenshot from nullsec life: our enemy -A- almost saved their system by destroying our SBU. An allied fleet drove them away when the SBU was deep in armor. On the picture you can see us repairing.
One more picture. You read about the supercap battle at LGK?
Finally the moron of the day! While people can lose ships without their own fault in a battle or well designed trap, having your ship terribly fitted has no excuse. Look at this mining barge and despair on the lack of brain (for newbies: lack of cyno, lack of tank, too many MLUs, too small cargohold, rigs don't help mining or surviving).
Wednesday morning report: 168.7B (5.5 spent on main accounts, 5.8+0.7 spent on Logi/Carrier, 3.2 on Ragnarok, 2.7 on Rorqual, 2.4+0.4 on Nyx, 2.8 on Dread, 37.4 sent as gift)
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