Another day, another moron letter:
This one informed me that I'm doing it wrong, since I sold the implant for 100M that I bought for 99M the day before. I do lose money on taxes on such trade, I'd be better off not doing it. What happened and why did I do it?
The day before the implant was 97M buy and 108M sell. So I set up a buy order for 99M and a sell order for 106M, for a 7M profit. Half day later I logged in, I found the buy order filled, and the sell order being undercut to 105M. Since I had enough implants now in stock, I simply moved the sell order to 103M. Half day later it was undercut by several 0.01-ers at 102.99999M So I undercut again, this time to 100M, which finally sold.
Did I lost money on the trade? Yes I did. But what else could I do? I have no control over the price, nor a crystal ball to see the future. I assume that the prices don't swing overnight. They usually don't. Sometimes they do. If they swing downwards, I lose money. If they go upwards and I have stocks in my hangar, I gain money.
The author of the moron letter would probably say "stick to the 108M price until it returns". However this advice has two problems: one is that I can't guarantee that the price will ever return. It would need serious investment research to guess how its price will move. Secondly is more importantly, until it happens, I can't trade the item since my money is locked in the unsold wares. Instead, I accepted that loss, regained my money at 100M and use it to buy more items at 90M to sell them 100M again.
The moral of the story is that you must decide if you are an investor or a trader. I choose the second, which means that I sell my wares at any price the best market gives. I always sell, no exceptions. I only make choices when setting a buy order and it depends on "is there enough margin between buys and sells?". If something has buy orders for 100M and sells for 102M, I won't bother. But if the margin is larger than 4%, I take it, and I can't care less if it's 80-84 or 160-166.
PS: very nasty philosophical post incoming tomorrow.
This one informed me that I'm doing it wrong, since I sold the implant for 100M that I bought for 99M the day before. I do lose money on taxes on such trade, I'd be better off not doing it. What happened and why did I do it?
The day before the implant was 97M buy and 108M sell. So I set up a buy order for 99M and a sell order for 106M, for a 7M profit. Half day later I logged in, I found the buy order filled, and the sell order being undercut to 105M. Since I had enough implants now in stock, I simply moved the sell order to 103M. Half day later it was undercut by several 0.01-ers at 102.99999M So I undercut again, this time to 100M, which finally sold.
Did I lost money on the trade? Yes I did. But what else could I do? I have no control over the price, nor a crystal ball to see the future. I assume that the prices don't swing overnight. They usually don't. Sometimes they do. If they swing downwards, I lose money. If they go upwards and I have stocks in my hangar, I gain money.
The author of the moron letter would probably say "stick to the 108M price until it returns". However this advice has two problems: one is that I can't guarantee that the price will ever return. It would need serious investment research to guess how its price will move. Secondly is more importantly, until it happens, I can't trade the item since my money is locked in the unsold wares. Instead, I accepted that loss, regained my money at 100M and use it to buy more items at 90M to sell them 100M again.
The moral of the story is that you must decide if you are an investor or a trader. I choose the second, which means that I sell my wares at any price the best market gives. I always sell, no exceptions. I only make choices when setting a buy order and it depends on "is there enough margin between buys and sells?". If something has buy orders for 100M and sells for 102M, I won't bother. But if the margin is larger than 4%, I take it, and I can't care less if it's 80-84 or 160-166.
PS: very nasty philosophical post incoming tomorrow.
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