September 25, 2013

How to: A Trade Guide

I have gone through, step by step, my thinking process for trading products on the market in Eve Online. This is the basic break down of what goes through my mind when I trade or manufacturer something in Eve Online.

1. Research Phase
1. First I pick a product, Choose a buy station/(mauf. cost) and choose a sell station.
2. Go to the market window and check:
Buy station's product's:

  • Cost overtime - Does the product general stay cheap to buy or make?
  • Current orders -  Is there enough supply for you to buy from at that low cost?
  • Volume overtime -  Are people resupplying?
Sell station's product
  • Cost overtime -  Is it stable at a high price?
  • Current orders - Is there low supply?
  • Volume overtime - Does it sell?
3. Scrap it/ Watch it/ Go for it.
  • Scrap it - If your asking yourself these questions and every time you say no just remove the item from your watch list.
  • Watch it - Indicators aren't great but margins have been good in the past? Keep it on your watch list and wait for another day.
  • Go for it - All indicators good overtime, it is time for a test phase.
2. Test Phase One - Low volume one week test phase.
1. Buy product/mauf. at supply station. I usually start my first order at one to five units worth of stock.
2. Set up test order with 5 units.
3. One week later check speed it sold. Quick sells are good, constant high 30% - 50% margins with no competition are best. Usually though you will see sold returns at about 10% margins. Time to move to the next test phase.

3. Test Phase Two - Higher volume one week test phase.
1. Buy product in larger amounts, 10 to 20 units as capital allows.
2. Set up test order with 20 units.
3. Check day to day over a week.
  • Do you get undercut a lot? Yes or No
  • Does it sell quickly(Relatively small amount of time between sells)? Yes or No
4. If indicators are still looking good and you want to move the item into your portfolio its time to go all out.

4. Portfolio Phase
Start buying and setting up your orders now, you should have run the numbers and should be good to go all out. As time goes on you will get an even better idea of how much competition there is for an product, how much volume you can push, and how much isk your really making.
  • Run the numbers check for the margins and the expected monthly totals. You want to get a general idea of what your going to make on the item this will help you later on as your portfolio expands to compare good trades to better trades.
  • Don't forget to keep an eye on other regional markets through Eve Central, contracts and general chatter.
  • Use tools like EveMon and EveMentat also Eve Neocom App for mobile devices to check: Product Orders is your volume low do you need to restock? You can tell when you have been undercut or its a low player day when order volume isn't dropping.
Optional Expansions
Regional Expansion: Run test phase at other locations in region. Then see how much of a regions volume you can capture.

Hostile Take Over: Identify constant undercut persons or stations. Bring in goods at lower price to remove them. Careful not to drop price to much.  Be creative here remove their supply, drop the price, hire some hit men.

Portfolio Review: After you have a long list of trade items, review your monthly numbers. Replace poor performers with test products or take strong performers into new regional markets.

Overnight/Weekend Investments: Keep a list of expensive low margin items for days when you need your money moving but are on vacation or have a busy weekend.


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