Market Discussions

Relatively new to eve, three weeks or so. First post here in the forum....

I'm trading in a few high and low volume items at the moment. items i have a healthy markup on and I'm making good isk,
In one item there's a very robust turnover in terms of volume. and a good few of us in the niche doing the .01 isk thing just to take a stable profit.

Then someone comes in and dumps a s**tload of new stock on it at market -20% taking a lot of the creamm off the top of the trade. I mean he dumps like a 5day supply of the stuff. so we have to follow him down and keep bumping along the the .01 isk because the volume trading isn't going to change massively from what I can see, so this guy is going to have to follow us down the same road.

Nope another trader comes in and takes another 20% off the market sell price and another buyer jacks up the buy side by 30% severely tightening the donchian burger.

Either way the traders that were trading these items are still there doing the .01 isk thing

So the only real thing thats happened is these guys that made huge bites have done is wipe out profit for themselves??????? they still have to do the same amount of updating to keep their price at the top, maybe not so much on the buy side with region buy orders but you get my drift.

Why does that happen? I mean, I'm staying in because I'm still making a healthy profit after the adjustment in prices....

i've found the answer on reddit. that was quick.....

THE answer is always 42. THE answer to life the universe and everything.

Ive done it few times with items gathered around the galaxy. On those cases i undercut the price about 20% and hope someone buys all my stuff to keep the profit margin as high as possible. Sometimes it works sometimes it doesnt

Making peoples trading experience unpleasant by any means available is an accepted tactic to persuade people to go trade somewhere else

Sometimes I do it just to troll other traders. It feels good knowing you've ruined everyone's day.

Hey

It is awesome to dump in the 5 days volume in your market, then you follow, then on second drop I can buy out the whole market and have stock to crash the market on a later date on your cost :D.

Besides that, I never 0.01 isk. Just ride the market, just monitor someone does not relist just under your bulk order, that is annoying. Then it is time to do a dump from old stock until he / she lowers enough. Then do a buyout again. Repeat.

Also, hedge dumps with buy orders.

;)

How do you know its not someone who just happened to gather all that stuff up mining or looting or whatever and hauled it somewhere to sell it quickly and get rid of it to go back to what they were doing.

The .01 isk thing is great if you're a trader who wants to maximize ROI.

The person who "wins" the .01 game is the person who can relist the most. If you're not completely focused on trading, you usually don't turn stock over fast enough to be worth trading for profit vs. other ways of making ISK.

Undercuts have lots of uses when it comes to the game theory of the market...

One poster mentioned they take those undercuts as opportunity to "stock up". Many people who make that big undercut are saying, "Please, take my stuff, because liquidating these assets is more important to me than maximizing the return on these items." Liquidity is important... that liquid ISK could be a new construction project or a new ship that would bring in more ISK in the short run than maximizing return. It's also important for people who live in nullsec or wormholes to be able to liquidate rather than play market games as they aren't easily able to babysit their market orders without extra effort.

There are some items that I list and I can get undercut by .01 4 or 5 times in a 10 minute period. When you have a large number of players aggressively trying to be the lowest price by .01, frequently making large undercuts sends a signal for them to back off their aggression. When they see their margins take a beating every time they relist by .01, they learn pretty quick not to relist so fast. It's a useful tool.

Sometimes I use the big undercut as a way to "shake up" a market. People can get used to certain cycles. The big undercut disrupts those cycles. It causes some people to leave, some to panic, some to be patient. No matter which way things go, there sometimes opens up ways to profit among the disruption. I'll especially want to shake things up if I'm a new entrant to a certain market... it gives me an opportunity to observe the reactions of competitors.

it's simply not true that "all traders" follow the 0.01 isking.

if i want ot sell my stuff quick, i undercut agressively. that way i can often sell in a day what would otherwise have taken me a week to get rid of.

that frees my money for another activity that can get me additional profit in that week.

i also often trade outside of jita. if some random scrublord moves in to make use of the established market with healthy 30% margin compared to jita i agressively drive him out of business by going right to production price +5% or so. If he starts buying my stock i simply flood the market with more than he can swallow just to make a statement. I don't even mind going to production price or even lower. i want him gone and i'm willing to pay for that.

i had someone try to enter the rig market in a lowsec pvp hub once. he stopped once i made sellorders that could have supplied jita for a week or longer.