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wallenbergaren
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Posted - 2009.08.01 14:32:00 -
[1]
Why are people trading multi million t2 mods when they don't seem to know sht about the market and fall into a stupid cheap trap and ruin the market for me? =/
'Hey guys look, the margin is really big! Lets raise our buy orders by a few mil and get some inventory dumped on us!'
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Breaker77
Gallente
Reclamation Industries
New Eden Research
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Posted - 2009.08.01 14:39:00 -
[2]
 Originally by: wallenbergaren
Why are people trading multi million t2 mods when they don't seem to know sht about the market and fall into a stupid cheap trap and ruin the market for me? =/
'Hey guys look, the margin is really big! Lets raise our buy orders by a few mil and get some inventory dumped on us!'
It's called getting rid of the competition.
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SpiderWebMayhem
GoonFleet
GoonSwarm
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Posted - 2009.08.01 14:58:00 -
[3]
Indeed. When you have billions of capital to throw around, it sometimes pays to take a loss so that other competitors (with much less capital, and therefore more stringent demands for profitability) are forced out of the market. Take a loss to make a profit.
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Hieronimus Rex
Minmatar
Infinitus Sapientia
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Posted - 2009.08.01 16:51:00 -
[4]
Edited by: Hieronimus Rex on 01/08/2009 16:51:00
Originally by: SpiderWebMayhem
Indeed. When you have billions of capital to throw around, it sometimes pays to take a loss so that other competitors (with much less capital, and therefore more stringent demands for profitability) are forced out of the market. Take a loss to make a profit.
This seems totally irrational as other investors will simply reenter the market as soon as margins expand again, leaving you with an unrecovered loss.
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Lord Fitz
Project Amargosa
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Posted - 2009.08.02 04:58:00 -
[5]
Originally by: Hieronimus Rex
This seems totally irrational as other investors will simply reenter the market as soon as margins expand again, leaving you with an unrecovered loss.
Depends on the item, but usually there is a good lag period before this happens.
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Hellinthose
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Posted - 2009.08.02 11:42:00 -
[6]
Originally by: Hieronimus Rex
Edited by: Hieronimus Rex on 01/08/2009 16:51:00
Originally by: SpiderWebMayhem
Indeed. When you have billions of capital to throw around, it sometimes pays to take a loss so that other competitors (with much less capital, and therefore more stringent demands for profitability) are forced out of the market. Take a loss to make a profit.
This seems totally irrational as other investors will simply reenter the market as soon as margins expand again, leaving you with an unrecovered loss.
If something is unprofitable for a long period, people often overlook the item as "Unprofitable" leaving someone with a high margin of items to simply sell them at a bit of a higher rate than they were undercutting for an thereby making a profit.
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Acalin
Gallente
Tribal Liberation Force
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Posted - 2009.08.02 18:24:00 -
[7]
Originally by: wallenbergaren
Why are people trading multi million t2 mods when they don't seem to know sht about the market and fall into a stupid cheap trap and ruin the market for me? =/
'Hey guys look, the margin is really big! Lets raise our buy orders by a few mil and get some inventory dumped on us!'
if they buy it, they can resell for more hence your price is to low.
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Taedrin
Gallente
Golden Mechanization Protectorate
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Posted - 2009.08.03 01:00:00 -
[8]
Originally by: Hieronimus Rex
Edited by: Hieronimus Rex on 01/08/2009 16:51:00
Originally by: SpiderWebMayhem
Indeed. When you have billions of capital to throw around, it sometimes pays to take a loss so that other competitors (with much less capital, and therefore more stringent demands for profitability) are forced out of the market. Take a loss to make a profit.
This seems totally irrational as other investors will simply reenter the market as soon as margins expand again, leaving you with an unrecovered loss.
This is not automatic. In order for this to happen, someone has to take a look at the price. It's essentially a gamble: how much ISK will I lose before I drive out the competition, and how long do I have to recover the ISK before the competition returns?
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Kobushi
Pony Technology
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Posted - 2009.08.03 02:52:00 -
[9]
when those deep pocket start selling at loss to push the competition out it's a bargin, just buy at loss and move it to where prices are normal and you just created a margin, also if they are selling at less then raw material value, buy/reprocess/profit.
Boom insta-margin
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