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EVE New Citizens Q&A

 
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Speculative traders
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KingRalph Schereau
Center for Advanced Studies
Gallente Federation
#1 - 2013-01-11 13:52:50 UTC
Day 3 of my trial - I've just had a poke around the market and the price history graph really caught my eye.

Do people actually use these graphs for technical analysis?
Are there actual FX, stocks, indices, securities, or futures traders here at EVE? Does your knowledge of real life markets help you in-game?
Do people make a profit from speculative trading?

Admittedly, having only a handful of indicators (2 moving averages, a 5 day Donchian channel and volume) is a bit limited. Will more indicators be added in future?

How is liquidity? Are there always buyers and sellers willing to take commodities off your hands?

Does the concept of "shorting" exist?
Musashi Date
#2 - 2013-01-11 14:01:08 UTC
Come to the Market Discussions and Science and Industry subforums, and you'll see a wealth of info there.
Daniel Plain
Doomheim
#3 - 2013-01-11 14:03:00 UTC
Musashi Date wrote:
Come to the Market Discussions and Science and Industry subforums, and you'll see a wealth of info there.

this, also: http://www.eve-markets.net/summary

I should buy an Ishtar.
Aptenodytes
Reckless Abandon
#4 - 2013-01-11 14:43:59 UTC  |  Edited by: Aptenodytes
KingRalph Schereau wrote:
Do people actually use these graphs for technical analysis?

Absolutely! In fact they have used the data from EVE's markets to analyze real-life stock markets. It behaves in much the same way, only at an accelerated rate, so it's quite useful.

[/quote]Are there actual FX, stocks, indices, securities, or futures traders here at EVE? Does your knowledge of real life markets help you in-game?[/quote]
There's no stocks (well not public traded ones anyway, there are corp shares but they are just for voting AFAIK), just ships, modules, rigs, blueprints, ammo, etc. But yes knowledge of real life markets would be very much useful if you want to make your fortune from trading.

Quote:
Do people make a profit from speculative trading?

Oh hell yes! Flavour of the month is very much a real concept in this game. If you can predict what will be next month's flavour then you can make a fortune buying it cheap now and selling it expensive later.

For example before the T1 frigate buff, I bought about 50 Slashers for 70k each. I told them a week later, for 500k each. Nice 20 mil profit, for virtually no effort.

The Christmas gifts that were given out, there were 4 ships, each the same as an existing ship but with a different paint job. In real terms their value is under 500k but due to the fact that they were new and shiny, people were paying over 40 mil each. So I put up buy and sell orders for them. I was buying Herons at 33 mil and selling for 45 mil... making 12 mil each. Magnates I bought for 25 mil and sold for 35. I made about 200 mil in a couple of hours that day, without even undocking.

... and these examples are small fry compared to what others have done. I am very much an amateur trader.

Quote:
Admittedly, having only a handful of indicators (2 moving averages, a 5 day Donchian channel and volume) is a bit limited. Will more indicators be added in future?

Probably not.

Quote:
How is liquidity? Are there always buyers and sellers willing to take commodities off your hands?

Very much depends on the item. You can check the volumes traded in the market statistics too ("Show table" button).

Quote:
Does the concept of "shorting" exist?

Well, you can't "borrow" things inEVE, unless from a friend. But if you've got something you won't need for a while, and think will decrease in value, then sell it now and re-buy it later.
Tenophas
Brutor Tribe
Minmatar Republic
#5 - 2013-01-11 16:27:43 UTC
I don't think that what a trader in r.l. normally use is easily usable in EvE.
First of all you don't have all the "tools" that are available in the r.l. markets.
Second point is that, even if there are hundreds, probably thousands players on the market, there is not enough liquidity in it for some indicators to work.

I have been a trader on the equity market for a few big banks for 15 years, till august 2008 when I decided I was getting too old for that crap (thank God, it was one of the best timing I could have).

Technical anlysis to work need huge volumes, great liquidity and a lot of historical data (with good volumes). Otherwise it's just a useless exercise.

Anyway, I guess that in EvE some sort of trading is not just possible, but it can be targeted to huge profits, probably it is the most lucrative way to make ISK in game. You will need all the possible tools to keep a good eye on the various commodities listed on the market: there are a few websites and maybe some standalone software you can find.

Vi veri universum vivus vici
Maire Gheren
Imperial Shipment
Amarr Empire
#6 - 2013-01-11 20:41:39 UTC
Some things work, others don't. You can't really build a lot of the more complex financial products here for various reasons. The basic things do apply.
Zol Interbottom
Blimp Requisition Services
#7 - 2013-01-12 09:04:11 UTC
The main difference is that IRL a bunch of angry bees don't show up and smash the entire system down when they get bored

"If you're quitting for the 3rd time you clearly ain't quitting" - Chribba
Varius Xeral
Doomheim
#8 - 2013-01-13 04:42:36 UTC
A good grasp of the basics of economics and finance will definitely serve you well, but be prepared for the differences in the application that come from the differences in a virtual economy and this particular virtual economy.

Trading is inarguably the best way to make the most money in this game, as a combination of effort, risk, luck, knowledge, etc.

Official Representative of The Nullsec Zealot Cabal
Varius Xeral
Doomheim
#9 - 2013-01-13 05:38:56 UTC
Man...I am the absolute worst self-promoter.

I didn't even think to mention that I run a channel for rookie traders: Syndicate Rookie Trader. The channel is dedicated to helping new players and players new to trading. Feel free to drop by and ask whatever questions to your heart's content.

There is also a link in my bio to our thread on the forums if you would prefer to use that, and that thread has some quality market rookie resources on it.

I've been playing for around four years now, and I'd say it's an even split between the market game and following nullsec politics that keeps me interested and playing. Not only is market play vast and compelling on its own, but it also meshes well with almost every other conceivable gamestyle, and you can easily trade as a secondary focus while concentrating on other aspects of the game or vice versa.

Official Representative of The Nullsec Zealot Cabal