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Worth the patience?
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Ayn Randy
Home For Pugs
#1 - 2012-01-03 00:27:43 UTC
So i just invested in to some big valued items. The profit margins were about 60mil each. Unfortunatey the market since took a dive for the worst before i could get rid of them and profits have dropped to about 10mil profit.

What would be the better way to go about this? Try flog them before the price crashes to no profit? Or wait it out until the price rises again?

My current liquidity is about 15% with those items taking up about 25% of my NAV. Would it be a wise decision to reinvest that elsewhere at no profit or loss? The only thing that bothers me is that by the time i get rid of them i will probably be at a loss!

Any advice?
Brock Nelson
#2 - 2012-01-03 00:33:25 UTC
To each their own

Person 1 would probably dump the item and move onto the next
Person 2 would probably wait until market recovers
Person 3 would probably move the item to a different market
Person 4 would probably try to scam with it
Person 5 would probably sell it via forum/contract

Take your pick, everyone's different.

Signature removed, CCP Phantom
Tanith YarnDemon
Hypernet Inc.
Umbrella Chemical Inc
#3 - 2012-01-03 00:45:16 UTC
Brock Nelson wrote:
everyone's different.


Speak for yourself, I'm not!

as for op, in a theoretical point of view it all comes down to how much you expect to make off of the isk while you wait for the market to get back up. Even if you make 1% annual profit it's better to take that over waiting 15 years for them to get back up to 15 mil per unit. How does the supply look, hows the demand(Are the prices being temporarily forced down or did you buy in to late in a spike)? What caused the price fluctuations?

Easiest way out is to just sell it off and reinvest in a market you're more familiar with as by the sound of things you don't really enjoy the current one. Might not be the most profitable solution however.
Jorn Isu
Caldari Provisions
Caldari State
#4 - 2012-01-03 08:02:26 UTC  |  Edited by: Jorn Isu
Ayn Randy wrote:
So i just invested in to some big valued items. The profit margins were about 60mil each. Unfortunatey the market since took a dive for the worst before i could get rid of them and profits have dropped to about 10mil profit.
irrelevant. don't let this enter your thinking at all. What you paid has no bearing on what you should try to sell it for (common layman misconception/misperception).
What would be the better way to go about this? Try flog them before the price crashes to no profit? Or wait it out until the price rises again?
As others have said, it depends on a number of factors. Check the other trade hubs to see what they're worth there, look at their market chart to see if they are likely to make a comeback, consider dumping them at the current price and reinvesting if your general ROI beats what you expect to get with the bounce. By the way, be sure to watch for the "Dead Cat Bounce" on them, and see if you can squeeze a few extra million out of them. Also, quoting us profit margins without giving us asset value is pretty meaningless. 10m profit is quite respectable on a 20m item, while non-existant on a 1b item.
My current liquidity is about 15% with those items taking up about 25% of my NAV. Would it be a wise decision to reinvest that elsewhere at no profit or loss? The only thing that bothers me is that by the time i get rid of them i will probably be at a loss!

Any advice?
Vaerah Vahrokha
Vahrokh Consulting
#5 - 2012-01-03 08:58:04 UTC
@OP

Your trading plan did not work, in those cases you put a "stop loss" level below which you take the tiny profit (or even some loss) and move on the next.

Keeping a big ballast on your liquidity won't help you anyway.

EvE Online portal | EvE markets tutorials
OllieNorth
Recidivists Incorporated
#6 - 2012-01-03 17:26:36 UTC
I personally believe in turnover more than the big hit. That being said, I also only have 90 mil in my wallet right now. So evaluate as you see fit.
Mantra Achura
Stammtisch
#7 - 2012-01-03 17:55:15 UTC
The decision depends on the type of item you've invested in. There is no general answer.
Kara Books
Deal with IT.
#8 - 2012-01-03 22:21:44 UTC
Ayn Randy wrote:
So i just invested in to some big valued items. The profit margins were about 60mil each. Unfortunatey the market since took a dive for the worst before i could get rid of them and profits have dropped to about 10mil profit.

What would be the better way to go about this? Try flog them before the price crashes to no profit? Or wait it out until the price rises again?

My current liquidity is about 15% with those items taking up about 25% of my NAV. Would it be a wise decision to reinvest that elsewhere at no profit or loss? The only thing that bothers me is that by the time i get rid of them i will probably be at a loss!

Any advice?


Sometimes you gotta take a loss.

I would liquidate only when I need the isk.
Levija Saplina
Ken Interplanetary Communication
#9 - 2012-01-03 22:56:11 UTC
Prisoner's dilemna.
Ave Volta
Perkone
Caldari State
#10 - 2012-01-04 03:10:17 UTC
Take the modest profit, reinvest.

There's an opportunity cost to just sitting on something hoping the price will recover at some point.

Black Frog Logistics - Lowsec/Nullsec Logistics Services. Join ingame channel 'Black Frog' for more info.
Kara Books
Deal with IT.
#11 - 2012-01-04 03:13:14 UTC
Ave Volta wrote:
Take the modest profit, reinvest.

There's an opportunity cost to just sitting on something hoping the price will recover at some point.


I read that, as molested profit
Ave Volta
Perkone
Caldari State
#12 - 2012-01-04 04:58:32 UTC
Kara Books wrote:
Ave Volta wrote:
Take the modest profit, reinvest.

There's an opportunity cost to just sitting on something hoping the price will recover at some point.


I read that, as molested profit

I'll take a molested profit over losses and high opportunity cost anytime Smile

It's one of those "would you feel worse if" kind of scenarios.

Would you feel worse if:

A. You lost a lot of isk.

or

B. You didn't realize the full profit potential.


My feeling is that smart investors avoid 'A' at the expense of 'B'.

Black Frog Logistics - Lowsec/Nullsec Logistics Services. Join ingame channel 'Black Frog' for more info.