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Station Trading - Realistic Expectations

Author
Malufenix
Doomheim
#1 - 2012-06-26 14:56:40 UTC  |  Edited by: Malufenix
Hey guys, slightly odd post but I just wanted to draw on the collective wisdom of the MD forum to try and put things into perspective.

Basically the question I've come with is, what should a new start trader be able to realistically expect to make in returns from station trading, given reasonable skills/standings/capital?

In my own case I've been trading in Jita for about a week now, started with 1.3b and on around 1.57b now, so I've made about 20% on my original investment.

Am I wrong to be slightly underwhelmed by making 270mil in a week or am I perhaps missing a trick here and still haven't fully gotten to grips with the full potential trading has to offer?

I should add I'm not here to ask anyone to take me by the hand and coach me through different trading tactics or anything, just a yea or a nea on whether I'm likely doing the right thing so I know whether to just keep doing what I have been, or if I perhaps need to go back to the drawing board and rethink my strategy.
Andy DelGardo
#2 - 2012-06-26 15:26:27 UTC
Around 2b in capital is the first big step, to make serious money, the next is around 10b.
The problem is that station trading is dominated by "knowledge" and meta-game market mechanics, this means one "clever" individual can basically double his/her investment every few days, while others may loose money, by bad speculations/manipulations.

The only "consistent" way to get a stable return, without excessive knowledge and experience is to camp/grind orders and play the 0.01isk game. This simply ensures that given enough time, u will "win" market pvp by sheer force.

The more exiting way is to study the market and find ways to make profit, this involves very good knowledge, a "brain" and reasonable funding.

So yes station trading can either be frustrating and boring or u shiver of excitement, just realizing that u made isk beyond your wildest dreams. Despite some believes "luck" is not this of a big factor.

good luck :p
Nayl Mkoll
Caldari Provisions
Caldari State
#3 - 2012-06-26 15:38:19 UTC
Its hard to scale due to how I have been doing it, but i found my price checker/buy plex alt had 2 mill on it a few weeks ago, maybe 3 weeks now. I decided as an experiment id see what I could do with that. So sparing a day of training off my combat main for that account (not this one) i have a trader toon with a whooping 17 orders and maybe 2-3 levels of broker relations to take a nip outta taxes. currently that 2 mill is approaching 7-800mill in current market order+ wallet+ assets. without ever leaving jita 4-4. I tend to take a more active approach of spreading out my orders with smaller quantities of stuff i know will move and flip fast. I also try to pick goods that are giving me a 25%+ return between the buy and the sell.

Think of the things that get lost/ dropped in the game, ie. pvp equipment, ammo. Min market i find only works if you look long run and speculate which right now ive lost alittle on.

but remember it also doesnt quite scale or stay consistent. all goods are going to peak at a point where you simply cant buy or sell more of them in a certain period of time so investing more into it is a waste. i'll make 25-50 mill buy orders that flip for 45-60 mill all day and have consistent return, if you set your volumes realistically like 25% of daily trade volume or something to that effect.
Anubis Star
Federal Navy Academy
Gallente Federation
#4 - 2012-06-26 20:13:48 UTC
you should be able to make between 200-450m with your capital easily (in a week).
Gregory Brunswick
Deep Core Mining Inc.
Caldari State
#5 - 2012-06-26 23:15:22 UTC
About 3 billion a month doing it casually (an hour a day) is fairly easy.
Rykker Bow
Center for Advanced Studies
#6 - 2012-06-27 00:03:50 UTC
So many different variables but a rough outline per week profits:

10-50% returns up to 2b
10-20% returns 2b-5b
5-15% returns 5b-10b
3-10% returns 10b-30b
1-8% retunrs 30b+

There are off the top of my head of what I've heard over the years and there are cetainly exceptions as well. In fact I'd say that most people who hang out in MD and scc-lounge probably see even higher returns (or higher isk/hour) than this. Let me know if any of these are way off base too.

The Mjolnir Bloc - Lowsec PvP for the sophisticated - The Mjolnir Bloc Killboards

Kara Books
Deal with IT.
#7 - 2012-06-27 02:53:45 UTC
20% per week is a very nice turn around.


Personally I estimate my return at about 5% per week avarage, doesnt sound like much, but it keeps compounding.


If you overdo it, I.E. get greedy, you will see competition lose their cool one after another and you will shoot yourself and them in the foot in very short order.

Take it easy, take your cut and LET others make something to, otherwise crashing and price hikes become rampant, canceling orders and watching prices crash will only lead to less ISK in the short medium and longrun.



Iv learned this the hard way, over 2 years in 5 regions.
Tom Hagen
Twilight Empire
#8 - 2012-06-27 05:25:51 UTC
Rykker Bow wrote:
So many different variables but a rough outline per week profits:

10-50% returns up to 2b
10-20% returns 2b-5b
5-15% returns 5b-10b
3-10% returns 10b-30b
1-8% retunrs 30b+

There are off the top of my head of what I've heard over the years and there are cetainly exceptions as well. In fact I'd say that most people who hang out in MD and scc-lounge probably see even higher returns (or higher isk/hour) than this. Let me know if any of these are way off base too.



How does that scale with your own 30b bond at 10%?

Back to the OP.
It would be interesting to know how much time and effort you put down to get those 270mil?
It should be a little slower when you start out because you should have done some research and getting the feel for the market.
To me the market is amazing because it lets me utilize my wallet even when I am offline. When I go to bed I still buy and sell stuff and earning ISK :-)
It lets me earn something on my billions that otherwise would have been idle.
I am sure there is people out there that are a lot more active and hence earn more ISK, but i feel that my ISK/h is awesome.

That said 270mil sounds a bit low :-(
Death ToU
Brutor Tribe
Minmatar Republic
#9 - 2012-06-27 08:29:33 UTC
Oh Rykker's first slip up :)

For what it's worth: I make between 100-150m a day using 3B and 53 order slots. I update my orders 3 times during the day, so approx 45mins to an hour. Which I am happy with at the moment as I play very little and get the chance to build my isk ready for some more pew pew :)
Malufenix
Doomheim
#10 - 2012-06-27 09:55:55 UTC
Thanks for all the great advice guys.

Having absorbed all of that I think there's clearly still room for a lot of improvement here so later on I'm gonna break out the coffee, take my portfolio by the knackers and see if I can't wring a bit more profit out of it.

I think the issues for me are

  1. How fast to expect an order to shift and if it's not getting fulfilled, when to drop it and move over to something else.

  2. Balancing between focusing on particularly profitable items and spreading out with others. Been warned of spreading myself too thinly before and I'm not generally filling out more than 50% of my order slots at the moment.


Anyway thanks again and if any of you know of any trading guides hidden away on the forums that deal with this kind of thing point them out to me. There are hundreds of beginners guides explaining the whole buy high sell low but none that I've been able to find that go into how to expand out from there.
RAW23
#11 - 2012-06-27 10:46:12 UTC  |  Edited by: RAW23
Tom Hagen wrote:
Rykker Bow wrote:
So many different variables but a rough outline per week profits:

10-50% returns up to 2b
10-20% returns 2b-5b
5-15% returns 5b-10b
3-10% returns 10b-30b
1-8% retunrs 30b+

There are off the top of my head of what I've heard over the years and there are cetainly exceptions as well. In fact I'd say that most people who hang out in MD and scc-lounge probably see even higher returns (or higher isk/hour) than this. Let me know if any of these are way off base too.



How does that scale with your own 30b bond at 10%?



a) Week does not equal month.

b) I think Rykker is being somewhat too modest for his own good so as not to appear like a showoff but his audits show him earning something like those returns per day. He probably just didn't want to rub our plebeian noses in it.

Edit - 70% monthly returns on 100bil for pure station trading discussed here (https://forums.eveonline.com/default.aspx?g=posts&m=1524957#post1524957).

There are two types of EVE player:

those who believe there are two types of EVE player and those who do not.

Rykker Bow
Center for Advanced Studies
#12 - 2012-06-27 11:17:59 UTC  |  Edited by: Rykker Bow
RAW23 wrote:
Tom Hagen wrote:



How does that scale with your own 30b bond at 10%?



a) Week does not equal month.

b) I think Rykker is being somewhat too modest for his own good so as not to appear like a showoff but his audits show him earning something like those returns per day. He probably just didn't want to rub our plebeian noses in it.

Edit - 70% monthly returns on 100bil for pure station trading discussed here (https://forums.eveonline.com/default.aspx?g=posts&m=1524957#post1524957).



I did indeed leave myself out as I seem to be somewhat an anomaly and did not want to skew the table. Last bond brought in 35% per week on 25b and this bond is on track to bring in 25% per week on 100b. The table and my own experience points toward diminishing returns the higher the working capital. Thoughts behind the table are more for the average trader and not the full time trader that continually monitors the market; those who occasionally do other things. The last two bonds have been all trading and manufacturing; once this one ends I will most likely slow down to do other things and those returns will fall off a bit.

Glad to see you posting again RAW! Welcome back to the forums mate Smile

edit: The plan outlined in the link provided by RAW is the one currently in use which is generating profits split 70/30 at the moment with station trading and manufacturing respectively.

The Mjolnir Bloc - Lowsec PvP for the sophisticated - The Mjolnir Bloc Killboards

Tom Hagen
Twilight Empire
#13 - 2012-06-27 11:34:40 UTC  |  Edited by: Tom Hagen
RAW23 wrote:
Tom Hagen wrote:
Rykker Bow wrote:
So many different variables but a rough outline per week profits:

10-50% returns up to 2b
10-20% returns 2b-5b
5-15% returns 5b-10b
3-10% returns 10b-30b
1-8% retunrs 30b+

There are off the top of my head of what I've heard over the years and there are cetainly exceptions as well. In fact I'd say that most people who hang out in MD and scc-lounge probably see even higher returns (or higher isk/hour) than this. Let me know if any of these are way off base too.



How does that scale with your own 30b bond at 10%?



a) Week does not equal month.

b) I think Rykker is being somewhat too modest for his own good so as not to appear like a showoff but his audits show him earning something like those returns per day. He probably just didn't want to rub our plebeian noses in it.

Edit - 70% monthly returns on 100bil for pure station trading discussed here (https://forums.eveonline.com/default.aspx?g=posts&m=1524957#post1524957).



Yes that is true week don't equal months.. I missed that part Sad
I almost got the feeling that you felt the need to come rushing in as a knight to protect Rykkers maidenhead, as soon as someone asked for a clarification on something odd in his post (even thou the odd thing was just a mistake from the same poster, yes me)
I am wondering do Rykker really have a maidenhead to protect, and do he need someone to protect it for him? P

The second thing is, with those revenues per day. Wtf is he doing in this forum asking for money still???
Starting to sound like a rep grind to me... Or someone is exaggerating Blink

Welcome back RAW23 Blink


Edit: Got sidetracked IRL in the middle of writing this post, so Rykker got in before me...
Tubrav Sadarts
Viscous Logistics
#14 - 2012-06-27 11:48:19 UTC
Malufenix wrote:
Hey guys, slightly odd post but I just wanted to draw on the collective wisdom of the MD forum to try and put things into perspective.

Basically the question I've come with is, what should a new start trader be able to realistically expect to make in returns from station trading, given reasonable skills/standings/capital?

In my own case I've been trading in Jita for about a week now, started with 1.3b and on around 1.57b now, so I've made about 20% on my original investment.

Am I wrong to be slightly underwhelmed by making 270mil in a week or am I perhaps missing a trick here and still haven't fully gotten to grips with the full potential trading has to offer?

I should add I'm not here to ask anyone to take me by the hand and coach me through different trading tactics or anything, just a yea or a nea on whether I'm likely doing the right thing so I know whether to just keep doing what I have been, or if I perhaps need to go back to the drawing board and rethink my strategy.


Starting in station trading is overwhelming, especially in Jita. The immense frustration of putting up an order and two minutes later someone else over/undercuts you is not fun, especially when this is spread over tens/hundreds of orders, so I congratulate you on sticking to it. In my opinion, 270m in your first ever week of trading is fine, since you're still learning how this stuff works and all that.

However, it's not exactly 'hard' to get your money to work for you in Jita. I started station trading in April with about 600m, and today my net asset value is somewhere around 15b. You'll have bad days where you earn nothing or very little, and great days where you pull in 1.4b over just one weekend. I hardly claim to know all the tricks and such, since I've only been trading a few months, but whatever I'm doing seems to work. The hardest part was probably trawling through every item in the market looking for ones with decent margins and volumes, but once that's done and you've added them to your quickbar, it's easy to put in an order for that item if it looks profitable that day.

Oh and, learn from my fail; don't decide to invest in mineral stocks the day they reach their peak value and thereafter proceed to crash :P

tl;dr... you're probably fine, just keep at it, find more items, fill more order slots, get a 'feel' for stuff, and you'll be fine.
RAW23
#15 - 2012-06-27 11:52:56 UTC
Tom Hagen wrote:

Yes that is true week don't equal months.. I missed that part Sad
I almost got the feeling that you felt the need to come rushing in as a knight to protect Rykkers maidenhead, as soon as someone asked for a clarification on something odd in his post (even thou the odd thing was just a mistake from the same poster, yes me)
I am wondering do Rykker really have a maidenhead to protect, and do he need someone to protect it for him? P

The second thing is, with those revenues per day. Wtf is he doing in this forum asking for money still???
Starting to sound like a rep grind to me... Or someone is exaggerating Blink

Welcome back RAW23 Blink



Not back, sadly, and probably won't be for at least another year. Just had a few minutes to come admire the forum drama about the FW exploit and thought I would drop in on MD. I have posted occasionally with other characters but I reactivated this character a couple of weeks ago as all my other accounts had run out and I needed a point of contact for some people.

First post I happened to see was one for which I was able to correct a misapprehension so I thought I would provide a valuable service to the community (ahem) and also take the opportunity to brush the dust off my white armour. In this case, I happen to know the details of Rykker's profits quite well because I have partnered up with him in the past and am somewhat in awe of his abilities (and no, astoundingly they are not exaggerated).

I also think he can sometimes be a bit too nice on the forums and that he needs to brag more! Blink

As to his maidenhead, if he's managed to survive flakeys' predatory advances then I'm sure he can manage without my help on that front.




There are two types of EVE player:

those who believe there are two types of EVE player and those who do not.

Rykker Bow
Center for Advanced Studies
#16 - 2012-06-27 12:39:16 UTC
ok ok...lets get back on track and stop talking about me!

to the OP: what do you think of me? j/k Big smile

Some pretty funny posting going on here, I'm having some good laughs.

@ Tom Hagen: the purpose of the bonds was to quicken the pace of generating isk. I roughly calculated that the two bonds combined saved 6 weeks of marketing and the profits being generated are still being inserted back into the venture. I do have a significant amount on standby waiting on one manipulation to take hold as it just on the cusp of turning.


Tubrav Sadarts wrote:

Starting in station trading is overwhelming, especially in Jita. The immense frustration of putting up an order and two minutes later someone else over/undercuts you is not fun, especially when this is spread over tens/hundreds of orders, so I congratulate you on sticking to it. In my opinion, 270m in your first ever week of trading is fine, since you're still learning how this stuff works and all that.

However, it's not exactly 'hard' to get your money to work for you in Jita. I started station trading in April with about 600m, and today my net asset value is somewhere around 15b. You'll have bad days where you earn nothing or very little, and great days where you pull in 1.4b over just one weekend. I hardly claim to know all the tricks and such, since I've only been trading a few months, but whatever I'm doing seems to work. The hardest part was probably trawling through every item in the market looking for ones with decent margins and volumes, but once that's done and you've added them to your quickbar, it's easy to put in an order for that item if it looks profitable that day.

Oh and, learn from my fail; don't decide to invest in mineral stocks the day they reach their peak value and thereafter proceed to crash :P

tl;dr... you're probably fine, just keep at it, find more items, fill more order slots, get a 'feel' for stuff, and you'll be fine.


good info here, especially using the quickbar to your advantage and continually searching through the market for new items to trade in that work best for your current capital, a must as many items have difficulty scaling up into larger profits while retaining the same isk/hour ratio.

And lots of good info coming out of the thread as well. Good questions as well, I'll add some thoughts to the discussion from the new questions brought out in a few hours (working at the moment)

The Mjolnir Bloc - Lowsec PvP for the sophisticated - The Mjolnir Bloc Killboards

Rykker Bow
Center for Advanced Studies
#17 - 2012-06-27 21:37:25 UTC  |  Edited by: Rykker Bow
Malufenix wrote:
Thanks for all the great advice guys.
Having absorbed all of that I think there's clearly still room for a lot of improvement here so later on I'm gonna break out the coffee, take my portfolio by the knackers and see if I can't wring a bit more profit out of it.
I think the issues for me are

  1. How fast to expect an order to shift and if it's not getting fulfilled, when to drop it and move over to something else.
  2. Balancing between focusing on particularly profitable items and spreading out with others. Been warned of spreading myself too thinly before and I'm not generally filling out more than 50% of my order slots at the moment.

Anyway thanks again and if any of you know of any trading guides hidden away on the forums that deal with this kind of thing point them out to me. There are hundreds of beginners guides explaining the whole buy high sell low but none that I've been able to find that go into how to expand out from there.


I like what you said about still room for improvement as I still think the same thing. I am always on the lookout for new items, ideas, tactics and strategies. There is much about the market that I don’t know, but I keep my ears open on the forums and scc-lounge for that little bit of information that will open up new doors, the proverbial light bulb if you will.

About your questions, I typically wait a couple of days at least before I remove an item that is not very profitable. An important thing to consider when canceling and taking a loss is: Can the returned isk be put to immediate and profitable use somewhere else. If yes, then cut your losses and move on if the item is a dud especially if your working capital is limited. If possible, figure out why it didn’t work and carry the knowledge on to other items. Some items rarely go to buy orders, others have extremely heavy compitition, some have large swings in their margin, etc.

With the balancing of profitable orders, stick with what you know will make a profit and slowly look for new items to trade in as your capital grows, replacing items when called for. It is great to look for new and even more profitable items but get all the profit you can from known items with the capital you are working with. Be aware of the cycles and the natural price of those items and don’t overstock what you cannot easily sell, most certainly do not keep all your eggs in one basket, stay diversified to an extent to hedge against large losses in one sector of the market.

I mentioned last year that I was in the process of writing a guide on advanced tactics for margin trading. The outline has been established a while ago and only needs content; aside from Malufenix, is there still a demand for it out there? Feel free to send me a mail or convo if you don’t want to post on the forums, just a yay (or nay) would suffice. Keep in mind that it will not be posted till after the completion of my current bond.

One last thing, any further comparisons of my e-honor to a virgins ‘honey pot’ will result in a frown face. Lol

The Mjolnir Bloc - Lowsec PvP for the sophisticated - The Mjolnir Bloc Killboards

Debiru
Universal Fleet Operations
#18 - 2012-06-29 18:55:57 UTC
The more time you put in-game, the higher your rate of return will be. Just building Fuel Blocks for Dodixie for 4 days, got me 250m with 1.5b investment (16.7% rate of return) in that project. But that was putting in a lot of time each day (several hours, though I was doing it semi-AFK playing my Xbox while I was shipping and camping market).

It's the same with the market. The more time you put into it, the more time you have to do the 0.01 ISK game, to find new deals, to find under-sold items people are trying to sell off quickly, etc. You have opportunities, but you won't be able to use them if you don't see them, and if you aren't online, you won't see them.
Danny Endlessy
Deep Core Mining Inc.
Caldari State
#19 - 2012-07-01 18:01:35 UTC  |  Edited by: Danny Endlessy
I started station trading during the first week of my trial. After 2 or 3 days I found the 66% off sale on Steam, bought Eve... Needless to say, 5 days later I've had enough to buy a PLEX, 3 or 4 days later enough for two PLEXes. My goal was to make enough for a PLEX in the first month of subscription that came with the game (I don't like spending money on subscriptions, I can aswell just buy singleplayer game for similar price.

My point being is the profits vary a lot depending on how much you are getting undercutted by 0,01 ISK and how fast can you react to that undercutting. If you'll check regularly and change the price every 5 minutes for 8 hours, it is doable to turn about 1000 millions in to 500 millions in a week, it is just tremendously boring and you'll suffer from burnout.

As you'll be putting up a lot of orders, get Broker relations atleast 4, Accounting atleast 4, and grind the reputation with the corporation which owns the station you intend to trade at. Otherwise, it all just depends which items you'll find and trade, it might even be good idea to throw in some inter-region trading (atleast that's what I do when I am bored of watching the market orders in my wallet.)

Charge on.
Boomhaur
#20 - 2012-07-03 09:21:50 UTC
Depends largely on your skill as a player in what to look for and do and time invested. Personally I did that for awhile than I got lazy and stopped, now I just do industrial stuff every now and than, though I should probably put some of my BPO's to work considering I have several researched ones laying around. When I do building or sell something I typically deal with high value goods in the + 10% profit range at minium, slower to move and you make less in the long run but I find it fits my very casual playstyle as long as I keep up with the market trends of said items. If I don't the potential to lose a lot of money is there.

Welcome to Eve. Everyone here is an Evil Sick Sadistic Bastard who is out to get you. Anyone who tells you otherwise is either trying to scam you or use you.

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