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Station Trading and Long Term Supply Investing

Author
Oemista Quintel
Deep Core Mining Inc.
Caldari State
#1 - 2013-06-23 03:19:09 UTC  |  Edited by: Oemista Quintel
Good Day All,

I'm really new to EVE, and am interested in more of the industrial aspect - Planetary Interaction, Production, and Market Trading. I've tried out Station Trading, but buying and flipping really isn't my style - not in that time frame anyways. I prefer to be patient, and reap larger rewards.

I bought and sold some PLEX to give myself a nice buffer of a wallet to start out with and I have a few questions to see if my ideas regarding Long Term Supply Investing(not sure what EVE players call it) are correct.

Below is an example of a stable item, one that doesn't see much increase in supply/demand. One that you would need to watch daily to turn a profit. A good station trading item.

Steady Market Item

And then there are these market items, that excite me. One's that steadily have highs and lows, and with patience could be very rewarding.

Flexible Market Item

So I must ask, would buying Flexible Market Items, warehousing them, and then selling them when market prices rise, month's down the road, be cost effective? Is this a standard form of ISK-making/trade here on EVE?

Also, I'd like to ask - How accurate are these Market History charts?
arabella blood
Keyboard Jihad
#2 - 2013-06-23 03:57:03 UTC
Perhaps its called "speculation trading", or part of it anyway.

Its a good method, can make isk for sure, but more risky.
You dont know what ccp will change, and how will the item react.

If you like it then why no :)

Troll for hire. Cheap prices.

Adunh Slavy
#3 - 2013-06-23 05:02:22 UTC
Yes. Need to do your research though as eluded to by the previous post.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Zappity
New Eden Tank Testing Services
#4 - 2013-06-23 07:25:37 UTC
Buy low, sell high can definitely work. No surprise there. But you definitely need to do your research first. Bear in mind that sudden price changes can be engineered, and this is not usually not for YOUR benefit.

Zappity's Adventures for a taste of lowsec and nullsec.

arabella blood
Keyboard Jihad
#5 - 2013-06-23 07:48:24 UTC
More to the op:
Many people use this method, and the income is great (as i have been told, i dont like it, not my style)
It requiers a large capital for the begining, and many order slots.
You wouldnt want to buy the items and wait 3 months before you cash them, leaving your isk to destiny, you want a steady flow. So you create several buy orders for the same item, at various prices on the items cycle, thats way with many items you get your stoks filled every day. Now its only a job of calculating at what price you bought that corrent stok and reseling higher.
I believe having 305 orders isnt enough, and large amount of isk is important, talking billions here.

The fact you earned anything with trading PLEX is lucky, because you can never fully know what will happen- maybe CCP will flood the market tommorow because they suspect a bubble ;) that kind of action needs to be researched before you move in.

Troll for hire. Cheap prices.

cuoredipietra famedoro
Deep Core Mining Inc.
Caldari State
#6 - 2013-06-24 07:32:07 UTC
TLDR: do your research; but i'll try to expand the subject a little....


You should investigate the causes of the price jumps you noticed on your "volatile" item.

Just as example these jumps could be caused by:

> CCP releasing a new expansion that iterates/modifies the item you are watching or the items that can be made starting from the item you are watching.

> Bottlenecks in the production-to-market chain: that price jump might indicate - for example - an item built in specific areas of 0.0 space that regularly undergoes to war, thus disrupting the 0.0-to-highsec logistic and thus the market

> Spikes in the item consumption: those jumps might indicate - again as example - an item that sometimes is found in very short supply on the market due to production spikes of items that can be built starting from it

> Speculation: has the item a low-enough traded volume (compared to its value) that entire markets can be bough-out by speculator and the items themselves relisted with a significant price increase?

> Player-driven events / market manipulations: is the item subject to speculation (it or what it helps to produce is said to be nerfed/bumped by ccp in a future expansion)?

There might also be other situations that could explain that graph i might not have considered, so the list could be longer.

Generally speaking, you want to understand in which case you are and act accordingly trying to anticipate events to minimize the risk and maximize the profit.

For example, this are a few questions you should ask yourself if you think the item you are watching will get Bumped by CCP:

> Is CCP really bumping your item?
> Are you certain?
> Do you know for sure markets will react with a price spike?
> Has the item enough sales volume you can realistically hope to quickly liquidate your asset?
> Do you know how much of a price spike you can expect? 20%? 50%? more?
> Do you have enough ISK to make a consistent profit given the expected price bump?

So you see, each and every case could be different and lead to a completely different set of questions.

My suggestion is to do your research thorougly, never invest all your wallet in speculative markets, read all dev blogs and forums and test on sisi regularly.

Wish u good luck :-)

Caeci caecos ducentes 

SJ Astralana
Syncore
#7 - 2013-06-24 11:01:11 UTC
Adunh Slavy wrote:
Yes. Need to do your research though as eluded to by the previous post.


Alluded?

Hyperdrive your production business: Eve Production Manager

arabella blood
Keyboard Jihad
#8 - 2013-06-24 12:32:16 UTC
SJ Astralana wrote:
Adunh Slavy wrote:
Yes. Need to do your research though as eluded to by the previous post.


Alluded?


Yesssss!!! We have a winer!!!
Contact me in game to recieve your prize of 50m as you are the winner of this weeks useless MD comment.
Stay tuned for next weeks useless comments!!!

(seriously, come get your cash)

Troll for hire. Cheap prices.

Adunh Slavy
#9 - 2013-06-24 14:00:03 UTC
SJ Astralana wrote:
Adunh Slavy wrote:
Yes. Need to do your research though as eluded to by the previous post.


Alluded?



Yup

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Oemista Quintel
Deep Core Mining Inc.
Caldari State
#10 - 2013-06-24 14:26:50 UTC  |  Edited by: Oemista Quintel
cuoredipietra famedoro wrote:
TLDR: do your research; but i'll try to expand the subject a little....


snipped...


Most of these questions that you've provided I played around with in my head, and makes sense. Due to these possibly being event-driven, or holding these items for an extended period of time it will require much more research - but buying in bulk and keeping stock until prices skyrocket due to such things as mentioned can yield an extremely high profit.

I didn't think about 0.0 bottlenecks, which is interesting. Is there certain items that can only be found in certain 0.0 regions/solar systems? As in Item A only exists in nullsec Solar Systems X, Y, and Z?

I began building an excel spreadsheet to keep up with all my transactions, but find that there's more logical information that I need to be displaying so I'll be working on building a .NET Application for myself so that I can collect information, do market trending, and keep up with all my orders correctly. I tried a program called EVE Mentat(?) and didn't really care for it.

This .NET application will probably be more like an Enterprise Asset Manager with Reseller Tools built into it. I've developed one before, so I'll probably just recycle some of it's code. One feature I'm looking forward to is that trading will be based on the actual asset itself and not the order - as seen with all the EVE market applications that I've seen thus far. I want to be able to look at an Asset, say Ammunition Item A, and see all the bulk orders that I've placed for that particular item. Then put in an X% amount for resell that I'd like to see for profit, and it give me the price that I'd need to sell those items for based on the average price paid for multiple different orders of that item.

Anyways, here's a screenshot of my spreadsheet - I just have test data plugged into it currently...

Long Term Trading Spreadsheet
Death ToU
Brutor Tribe
Minmatar Republic
#11 - 2013-06-24 17:30:17 UTC
arabella blood wrote:
SJ Astralana wrote:
Adunh Slavy wrote:
Yes. Need to do your research though as eluded to by the previous post.


Alluded?


Yesssss!!! We have a winer!!!
Contact me in game to recieve your prize of 50m as you are the winner of this weeks useless MD comment.
Stay tuned for next weeks useless comments!!!

(seriously, come get your cash)


Winner?
arabella blood
Keyboard Jihad
#12 - 2013-06-24 17:37:54 UTC
I think the profits will be minimal if non existing at all. If i understand your plan, on paper it sounds gold and awesomly cool but as i think of 1 factor from gaming theory makes me rethink it. Im talking about "what will happen if everyone doing what im doing".
Waiting ages until ccp makes some change, then placing a bet on the outcome, although a calculated bet, is:
1. Too boring.
2. Too risky.
3. Hold no value as you are by far not the only one playing.

Just an example of latest times: R64materials vs items produced from, large fitted rigs vs new capital ones etc. are all turned out as bad investment for the time being, and will take a real long time until they bring profit if at all.
Its like buying all the gnosis ships you can and waiting 10 years to sell them at profit when they exctinct :) sounds cool, but who really wants to do it...

Troll for hire. Cheap prices.

arabella blood
Keyboard Jihad
#13 - 2013-06-24 17:40:58 UTC
Death ToU wrote:
arabella blood wrote:
SJ Astralana wrote:
Adunh Slavy wrote:
Yes. Need to do your research though as eluded to by the previous post.


Alluded?


Yesssss!!! We have a winer!!!
Contact me in game to recieve your prize of 50m as you are the winner of this weeks useless MD comment.
Stay tuned for next weeks useless comments!!!

(seriously, come get your cash)


Winner?


Damn, i think you gonna have to split the prizeBig smile

Troll for hire. Cheap prices.

cuoredipietra famedoro
Deep Core Mining Inc.
Caldari State
#14 - 2013-06-24 17:47:33 UTC
Oemista Quintel wrote:

I didn't think about 0.0 bottlenecks, which is interesting. Is there certain items that can only be found in certain 0.0 regions/solar systems? As in Item A only exists in nullsec Solar Systems X, Y, and Z?


Sure, for example moon materials: they are located in low and 0.0, the most valuable moons move entire alliances to war (have you reacently heard about thulium?)

Oemista Quintel wrote:

so I'll be working on building a .NET Application for myself so that I can collect information, do market trending


You can use self-made graphs to show trends and there are capsuleers in MD forum who will strongly advise you to do so. I suggest you to get in touch with Vaerah Vahrokha, she is an expert chartist if that is your thing

Personally I like to keep things simple and relay on excel worksheet that show me per-transaction margins, then i try to find the best margin for the highest sell-volume and repeat. It works but you might like it or not depending on your playing style.

Oemista Quintel wrote:

here's a screenshot of my spreadsheet - I just have test data plugged into it currently...


Nice job on your spreadsheet. I wouldn't use it for my accounting (again, depends on my gaming style) but surely you could use it to keep an eye on your Net Asset Value and/or provide it as proof of your progressions in case you decide to pick a loan in the future.

Caeci caecos ducentes 

Oemista Quintel
Deep Core Mining Inc.
Caldari State
#15 - 2013-06-24 18:15:27 UTC  |  Edited by: Oemista Quintel
arabella blood wrote:
I think the profits will be minimal if non existing at all. If i understand your plan, on paper it sounds gold and awesomly cool but as i think of 1 factor from gaming theory makes me rethink it. Im talking about "what will happen if everyone doing what im doing".
Waiting ages until ccp makes some change, then placing a bet on the outcome, although a calculated bet, is:
1. Too boring.
2. Too risky.
3. Hold no value as you are by far not the only one playing.

Just an example of latest times: R64materials vs items produced from, large fitted rigs vs new capital ones etc. are all turned out as bad investment for the time being, and will take a real long time until they bring profit if at all.
Its like buying all the gnosis ships you can and waiting 10 years to sell them at profit when they exctinct :) sounds cool, but who really wants to do it...


Well, I believe this is where my trading style differs a bit from yours then. In, that I see long term investment as very rewarding. Based on my observations of the economy thus far in EVE, it works much like long-term stock portfolios do in real life.

My stock portfolio in real-life is broken down like such: 25% High-Risk Long-Term, 25% Low-Risk Long-Term, 25% High-Risk Short-Term, and 25% Low-Risk Global.

Boring is more of an opinion than something that you can show on a fact sheet, and Long Term event-driven investing, from my experience is a way to make considerable gains. It won't be the only trading I'll be doing - you never put all your eggs in one basket as they say, but it will be something that I find fun and are able to watch - plus, this level of research will definitely let me learn more of the overall market instead of just sticking to one marketing station like Jita (that's what I find rather boring). Sure, it may take awhile to sell inventory - but in the meantime you can stockpile, and I like playing the patience game anyways.
Oemista Quintel
Deep Core Mining Inc.
Caldari State
#16 - 2013-06-24 18:21:27 UTC
cuoredipietra famedoro wrote:

Sure, for example moon materials: they are located in low and 0.0, the most valuable moons move entire alliances to war (have you reacently heard about thulium?)


Nope, but I'll look into it. That seems logical enough though, is there a news site or any good websites to gain political information regarding corporation warfares?

Quote:

You can use self-made graphs to show trends and there are capsuleers in MD forum who will strongly advise you to do so. I suggest you to get in touch with Vaerah Vahrokha, she is an expert chartist if that is your thing

Personally I like to keep things simple and relay on excel worksheet that show me per-transaction margins, then i try to find the best margin for the highest sell-volume and repeat. It works but you might like it or not depending on your playing style.


I'll most likely be integrating a Crystal Reporting tool into it, for pie charting and reports and such. You can do some really neat things with Crystal Reports.


Quote:

Nice job on your spreadsheet. I wouldn't use it for my accounting (again, depends on my gaming style) but surely you could use it to keep an eye on your Net Asset Value and/or provide it as proof of your progressions in case you decide to pick a loan in the future.


If you look, that's just the front page of the spreadsheet that's fed all the "Overall" data from the rest of the spreadsheets. My individual orders and projected profit from the orders is accounted for in the other spreadsheets respectively.

Right now I have it to project out a recommended sell price of +20%. So if I buy an item and the price won't net me a profit of +20% of what I bought it for then I won't sell it. Broker Fee's and Taxes are included in this determination. For my Long-Term investing I'd like to stick to a +40% margin.
arabella blood
Keyboard Jihad
#17 - 2013-06-24 18:27:08 UTC
Oemista Quintel wrote:
arabella blood wrote:
I think the profits will be minimal if non existing at all. If i understand your plan, on paper it sounds gold and awesomly cool but as i think of 1 factor from gaming theory makes me rethink it. Im talking about "what will happen if everyone doing what im doing".
Waiting ages until ccp makes some change, then placing a bet on the outcome, although a calculated bet, is:
1. Too boring.
2. Too risky.
3. Hold no value as you are by far not the only one playing.

Just an example of latest times: R64materials vs items produced from, large fitted rigs vs new capital ones etc. are all turned out as bad investment for the time being, and will take a real long time until they bring profit if at all.
Its like buying all the gnosis ships you can and waiting 10 years to sell them at profit when they exctinct :) sounds cool, but who really wants to do it...


Well, I believe this is where my trading style differs a bit from yours then. In, that I see long term investment as very rewarding. Based on my observations of the economy thus far in EVE, it works much like long-term stock portfolios do in real life.

My stock portfolio in real-life is broken down like such: 25% High-Risk Long-Term, 25% Low-Risk Long-Term, 25% High-Risk Short-Term, and 25% Low-Risk Global.

Boring is more of an opinion than something that you can show on a fact sheet, and Long Term event-driven investing, from my experience is a way to make considerable gains. It won't be the only trading I'll be doing - you never put all your eggs in one basket as they say, but it will be something that I find fun and are able to watch - plus, this level of research will definitely let me learn more of the overall market instead of just sticking to one marketing station like Jita (that's what I find rather boring). Sure, it may take awhile to sell inventory - but in the meantime you can stockpile, and I like playing the patience game anyways.


i meant boring as of "wait a lot of time until something moves", like waiting a tleast 6 months for a new patch, and all you got meanwhile is soon™ Blink
i guess im not the type who can delay gratification. i only hope you make good invesments and have fun, may the gods of isk bless you!

Troll for hire. Cheap prices.

Vaerah Vahrokha
Vahrokh Consulting
#18 - 2013-06-24 18:57:32 UTC
Oemista Quintel wrote:
Good Day All,

I'm really new to EVE, and am interested in more of the industrial aspect - Planetary Interaction, Production, and Market Trading. I've tried out Station Trading, but buying and flipping really isn't my style - not in that time frame anyways. I prefer to be patient, and reap larger rewards.



You might be interested at this thread.

The "be patient, reap larger rewards" reaped me more than a fitted Titan worth of purely AFK money.
Oemista Quintel
Deep Core Mining Inc.
Caldari State
#19 - 2013-06-24 19:34:08 UTC
Vaerah Vahrokha wrote:
Oemista Quintel wrote:
Good Day All,

I'm really new to EVE, and am interested in more of the industrial aspect - Planetary Interaction, Production, and Market Trading. I've tried out Station Trading, but buying and flipping really isn't my style - not in that time frame anyways. I prefer to be patient, and reap larger rewards.



You might be interested at this thread.

The "be patient, reap larger rewards" reaped me more than a fitted Titan worth of purely AFK money.


This! Is exactly what I'm looking for, thank you much.
Vaerah Vahrokha
Vahrokh Consulting
#20 - 2013-06-24 21:38:31 UTC
Oemista Quintel wrote:
Vaerah Vahrokha wrote:
Oemista Quintel wrote:
Good Day All,

I'm really new to EVE, and am interested in more of the industrial aspect - Planetary Interaction, Production, and Market Trading. I've tried out Station Trading, but buying and flipping really isn't my style - not in that time frame anyways. I prefer to be patient, and reap larger rewards.



You might be interested at this thread.

The "be patient, reap larger rewards" reaped me more than a fitted Titan worth of purely AFK money.


This! Is exactly what I'm looking for, thank you much.


Well, since you seem interested, I have created a whole website dedicated to:

- EvE trading "the normal way" including lots of references and links.

- EvE and RL swing trading, including past trades examples and a partial trading course, complete with videos! It includes appendixes describing both some of my EvE trades and how to import EvE market data into RL trading platforms, professional charting and more. All for free.
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