| Pages: [1] :: one page |
| Author |
Thread Statistics | Show CCP posts - 0 post(s) |
Brock Nelson
Caldari
Flux Technologies Inc
   |
Posted - 2008.09.19 23:02:00 -
[1]
One thing that I'm starting to notice when I'm doing my trades is that the profit margin is too low for my taste; the profit in my trades usually goes at 2%. However, with 2%, if I'm focusing on volume-wise in my trades, 2% can be significant.
What's your thoughts guys? Do you go with volume or profit margin? Just at what point does the volume/profit margin becomes too low for you to bother with the trade?
|
Jinx Barker
GFB Scientific
|
Posted - 2008.09.19 23:47:00 -
[2]
I have always done volume, profit margins have been razor-sharp for a very long time now. On the other hand, I found that invention, with some patience, and some degree of foresight, can make me more ISK/Hour than I did with trading.
|
Mephistocles
Red Frog Investments
Blue Sky Consortium
|
Posted - 2008.09.19 23:57:00 -
[3]
Nothing wrong with small margin - high volume trading imo. A lot of time it proves to be more profitable than the higher margin items. You just have to remember to factor in broker fees and such when you are dealing with the low margin stuff. Because of that reason I try to make sure I'm making at least 5%, even with the fast moving stuff.
|
Fumbles
|
Posted - 2008.09.20 00:07:00 -
[4]
Are you taking tax/fees into account with that 2%? I look for around 8%+ on high volume items.
|
scroft
|
Posted - 2008.09.20 01:16:00 -
[5]
I carry a spreadsheet with around 25 items that i add or subtract from around every month. Most items trade around 20-200 items per day on the market. The items i chose trade from between 9m and 35m isk each, and i buy around 10 of 4 or 5 items, twice a week. I normally have around 700m in trade twice per week. I won't buy anything which doesn't look to have a 10%+ profit (sometimes upto 20% when i manipulate or get lucky). I find anything under, 10% unless i can find an almost immediate sell, isn't worth it as the margin soon falls and so gets to break even. I almost always find something to trade. I increase my wallet by around 150m per week which is around 4x what i would get from a bond or offering.
scroft
|
Taikun
Gallente
20th Legion
Southern Cross Alliance
|
Posted - 2008.09.20 05:10:00 -
[6]
 Originally by: Brock Nelson
What's your thoughts guys? Do you go with volume or profit margin? Just at what point does the volume/profit margin becomes too low for you to bother with the trade?
What you are asking in effect is for us to comment on 'how long is a piece of string'.
Nevertheless, look into using 'rate of return on equity invested' and make a value based judgement on the time it takes you to do both activities and you will get an answer that pertains to your situation. (Whhich is what I think you are seeking anyway.)
Taikun
A criminal is a person with predatory instincts who has not sufficient capital to form a corporation. |
Shar Tegral
|
Posted - 2008.09.20 05:13:00 -
[7]
Originally by: Taikun
What you are asking in effect is for us to comment on 'how long is a piece of string'.
How aptly put. (Seriously)
To Shar -verb:
1 - To say what you mean.
2 - To say what it means.
3 - To say something mean. |
Tasko Pal
Heron Corporation
|
Posted - 2008.09.20 07:25:00 -
[8]
Originally by: Brock Nelson
What's your thoughts guys? Do you go with volume or profit margin? Just at what point does the volume/profit margin becomes too low for you to bother with the trade?
I trade over several characters with varying standing and amount of time spent on the market. Currently, I'm trading profit margin over volume. This is partly because my transaction fees are too high and I currently am not spending a lot of time trading. If I were to start day trading some heavy market (after working those fees down) I'm pretty sure I can do quite well.
|
Ambo
Dirty Deeds Corp.
Axiom Empire
|
Posted - 2008.09.21 11:31:00 -
[9]
I mix. I don't care if it's high volume, low unit profit or low volume, high unit profit. All I care about is how much effort I need to put in and how much isk I get out.
--------------------------------------
Trader? Investor? Just want to track your finances? Check out EMMA |
flakeys
Coalition of Nations
Free Trade Zone.
|
Posted - 2008.09.21 12:21:00 -
[10]
Edited by: flakeys on 21/09/2008 12:25:35
Originally by: Ambo
I mix. I don't care if it's high volume, low unit profit or low volume, high unit profit. All I care about is how much effort I need to put in and how much isk I get out.
Same for me.I mostly try and achieve X isk amount a week.Offcourse with months/years the amount rises.I include ratting and trading and then see how much time i have that week.Not much time then do a small but risky trade wich get's me a verry high profit if i have a lot of time i hang in one empire region for a week/month and work with buy-sell orders there.I usually go for X percent addition to what i have in my wallet and try to get that by the end of the week.So for example i have 5bille in the wallet then i set my goal to reach 5.5 bille by the end of that week.
So far allmost every month i made that margin but the more isk you get the more difficult it becomes to reach that goal.But i ONLY take into account what i have in my wallet so if i have high isk investments be it through buy orders or IPO/BOND i don't count that into the profit margin i have in mind.
The good thing for me about this is that every week is a challenge i aim for and that keeps me interested in the trade part of eve.
|
Zos Tarkross
Amarr
Suddenly Ninjas
|
Posted - 2008.09.22 08:59:00 -
[11]
Originally by: Brock Nelson
Do you go with volume or profit margin? Just at what point does the volume/profit margin becomes too low for you to bother with the trade?
I'm small potatoes but for me it's profit margin. I like the items with spreads over 20% but obviously those are slower movers. Since I'm chicken, the larger the spread, the less one gets affected by change in average price.
|
| |
|
| Pages: [1] :: one page |
| First page | Previous page | Next page | Last page |