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Cheque Please
Hot Like Mexico
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Posted - 2010.06.20 03:51:00 -
[1]
Edited by: Cheque Please on 20/06/2010 03:53:07
Edited by: Cheque Please on 20/06/2010 03:52:07
I don't get it.
After noticing the PLEX market crashed a couple of million ISK this Saturday morning, I just have to ask a question that has always been nagging me: why does anyone trade PLEXs? The profit margin is often incredibly tiny, people (bots?) .01 ISK each other every 15 seconds, the market has a tendency to fluctuate chaotically, randoms are jumping in and dumping cash bought stock for a quick sale, and it takes hundreds of millions of ISK to buy and move stuff at a decent rate.
I suppose with enough dedication it could be profitable... but more than any other item? Who here trades in PLEXs and would like to raise their hand and shut me up with a brilliant counter-argument?
Edit: I should note I'm talking about Jita. IDK how it is in a place like Rens or Hek.
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Real-Life Meeting with Chribba |
omgevenmoarfreemoniez
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Posted - 2010.06.20 04:27:00 -
[2]
People trade PLEX because John Doe is on their side!
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Aurum Bellator
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Posted - 2010.06.20 04:37:00 -
[3]
Still wondering why your avatar never shows up. Outer space white exclamation marks for teh win.
AUB
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Cheque Please
Hot Like Mexico
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Posted - 2010.06.20 04:41:00 -
[4]
 Originally by: omgevenmoarfreemoniez
People trade PLEX because John Doe is on their side!
What?
Originally by: Aurom Bellator
Still wondering why your avatar never shows up. Outer space white exclamation marks for teh win.
You're not the only one.
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Real-Life Meeting with Chribba |
Tekota
legion industries ltd
Veni Vidi Vici Alliance
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Posted - 2010.06.20 11:09:00 -
[5]
Edited by: Tekota on 20/06/2010 11:10:47
You kinda answered your own question. There are fluctuations therefore there is profit (potential that is, loss is also a potential). It takes a boat load of money - there are limited avenues to turn a profit on huge sums of money - it's easy to make 10% on a hundred mill but 3% on multi billions is a harder feat; those same items that turn 10% aren't necessarily traded in large enough ISK volumes to regularly keep large quantities of ISK working so you can either spread across a large number of low isk volume items or across a smaller number of large isk volume items. Or some combination of the two, or whatever floats your boat. Margins are thin in percentage terms but potentially decent in cash terms; 10% on a hundred mill is 10 million ISK, 3% on 10 billion is 300 million ISK.
And 0.01 ISKing is hardly limited to plex trades.
edit: corrected math. again. that'll be why I'm not regularly moving multi billions
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Khun SP
Paramite Factories
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Posted - 2010.06.20 11:33:00 -
[6]
I love active-trading PLEXs from time to time. Here are some tips on my experience:
- You need about 2b sitting on wallet. This will let you trade up to 6 PLEX which in my opinion is the best amount: big enough to make nice profit/time and small enough to avoid excessive competitors undercutting.
- Notice GTC users usually sell PLEX at pairs, so go for 4, 6 or 8 PLEX for example.
- Calculate your broker fees and tax costs. Usually with horrible skills and standings will be 3%, so around 9m isk. With not an excessive effort you can get to 1-1.5% which will cost you 4m isk on taxes per PLEX. This means when gap between buy and sell orders is 6m isk, you will earn 2m isk.
- Consider this is a medium-risk trading activity. You can't earn sure profits, and you can lose sometimes. Trade actively, not even think of set some orders and come back next week. 24hours gap as much.
- Estimated profits: you need to constant babysit your orders. Earnings can be 60m isk per hour on a very good day or other times NULL ISK on a busy 3 hours session. And sometimes you end up losing 20m isk due to crazy oscilations. Also, the 100m isk/hour days won't last forever.
- If you are leaving computer for a long time (+12 hours) you can decide whether setting some orders and log off, or stay with isk. Its always a win/lose choice, depending on next hours market movements. For example if you add 8 buy orders for 290m and next day are completed and orders are 310/302 (sell/buy) this is a big win. But you can come and see how market is 289/281, now you have screwed it LOL. See this as a bet.
- Remember to activate the warning boxes, so if you put a 30m isk sell order (instead of usual 300m) you get a "hey moron" warning  I remember a dude sold me a plex for 300k isk once  but this happens once each a thousand times.
- Welcome to excel
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Clair Bear
Ursine Research and Production
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Posted - 2010.06.20 15:30:00 -
[7]
If you're not making a crazy amount of ISK trading, speculating, manipulating or otherwise riding others manipulations in PLEXes you're doing it wrong. The sheer ISK volume per day dwarfs just about anything else. Why wouldn't you want a piece of that?
And in summary, bigger blobs are the answer. Now what was the question? |
Atsuko Ratu
Caldari
Perkone
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Posted - 2010.06.21 02:53:00 -
[8]
Originally by: Clair Bear
If you're not making a crazy amount of ISK trading, speculating, manipulating or otherwise riding others manipulations in PLEXes you're doing it wrong. The sheer ISK volume per day dwarfs just about anything else. Why wouldn't you want a piece of that?
I missed you.
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