Market Discussions

Through simple station trading and item strategies I am averaging 250mil per day...

I just have nothing to compare that to.

I have roughly 12.0B between assets/buy order/cash which means a 2.1% daily return...

This is going to get out of hand... I'm going to be ******** rich right?

Or am i still small potatoes...

<3 EvE

15-20% ... wow. I just don't see how that's possible.. Even trying to stay on top on superhigh volume items doesn't get me anywhere near that..

Something to consider is how you calculate your return. Some people, like your self, use their total value to calculate return. This will give a lower number. Some folks report a number based on the average return of their individual positions.

For instance, in the past few days, some my trades gave me a 100% return on the trade. But the return, calculate against my entire worth is about 0.10%. When someone gives you numbers, inquire how they are calculated, they are other wise meaningless.

100B (in total assets) is wealthy
1T (in total assets) is notably rich

Wormholers, FW/Incursion multiboxers... a huge range of players really have no problems hitting 100B if they've been playing for a while.

You'll find the real "challenge" is making isk once you have enough isk to do whatever you want. Most players just stop piling it up before they even hit 10B. Some other players see isk count as their character level...

The problem will be maintaining the same margins as your pot of cash gets bigger. If, for example, you just add extra items to your portfolio then you will find the number of orders you manage, and thus your workload, increasing in proportion with your wealth. At a certain point in time you will want to move away from the metric of % return on investment to that of absolute earnings per unit of time (isk/hour).

The way I do it is by allowing myself a set amount of time per day for making isk and attempting to maximise the amount of profit I generate a month with that limitation in mind.

In my case, I allocate 30 minutes each day.

I sit in Jita all day.

I haven't looked at my net worth in the last year as EveHQ gave that to me quite easily, but I switched to my own management software, so I ran a couple queries and see that my working capital has expanded from 30bil to 110bil in that time. That's not a reflection of total profit, as I feed my pvp accounts out of a holding account. I've been a large-scale T1 producer for four of the last six years in Amarr.

Last year I was making 4bil on the 30 per month for 13%, but I had massive supply side disruptions. When you get disrupted supply-side, your higher markup items get starved and you have lost opportunity. My software made my choice of markups much smarter, as I began to realise how much working capital is really needed to drive factory efficiency. I've had a few 10bil profit months since then (and a few 35bil weekly sales spikes), but each time I did that my stock got exhausted and things got constipated again, leading to yet more adjustments.

Over the last six months I've been averaging 6bil so as little as 6% monthly, while making a strategic decision to focus on stock levels to again try to drive factory efficiency. I can't even begin to consider capital rigs or more battleship bpos at the moment, which is actually an acceptable problem to have because their profit margins are lower than the margins in my portfolio which is now only adequately supplied. My time investment is under 30 minutes a day, so that 6% doesn't fuss me as the bottom line is a sustainable 400mil/hr which in the end is all that matters to me. Incidentally, my GP% over the past 30 days has been 24% which is mostly a side-effect of tieracide on the markets.

I don't believe for a second 10bil in capital can drive 7.5bil a month in profit without a massive time investment.

Oh but it can. You're comparing apples to oranges though. You follow prices around and continually chase them therefore you're a slave to the market. I however identify goods that are underpriced relative to their economic value and help them on the right direction. What you and I do are about as similar activities as a painter who paints walls and a painter who works on canvas .

Indeed I have found a pretty comfortable modus operandi for myself which I'm obviously not going to disclose so you'll have to take my word for it. I have managed over 100% returns on capital over 30 day periods several times in a row. Then I get thoroughly bored of it for a while and blow half of it in pvp, then I start over again.

And while I can manage that on the magnitude of 10 bil working capital I don't really think it would be feasible on a 100 bil level.

This is exactly right. As my capital increased from region trading into the tens of billions it became increasingly difficult to keep on top of everything.

So I semi-automated everything (scripted database updates, predefined opportunity alert emails, summary pages of where investment is required etc).

I'm now at about 10 min/day effort and about 10% per month profit on entire portfolio. Good enough for me - I just don't have more time to spend on it.