Tuesday 17 July 2012

Some Aggressive Trading Strategies

Everyone likes to be the next sell order. That's why people 0.01 isk each other constantly. 

This is especially important when the market is at a high. This could be due to a manipulation or natural market cycles, but sometimes sell prices are providing super high margins and its worthwhile to babysit sell orders to make sure that when players make purchases, they are buying your goods.

So there are two key strategies to maximise this:

(1) Multiple Sell Orders

A market order can only be modified once every 5mins. This is very restricting in the most competitive markets. As such, split up your stock in stacks, so you can modify orders more often. More tedious and more work, but sometimes worth it. 



(2) Be Aggressive

The best pvpers never undock! Sometimes when you are in a 0.01isk war, you can drive the price down to a point where its profitable or advantageous to buy out the competition and relist their stock. Sometimes you can turn a decent profit, other times you only break even but you can go to bed knowing that you will not be undercut as soon as you log off. 
To illustrate with a very small example (note: on my market window, I sort sell orders so the cheapest is on top)

I was babysitting some cap mods - I had little stock left and wanted to clear it at a good sell price:



I had the market to myself for a long while, but then a new sell order popped up.



When new orders appear, they often aren't monitored in the cap module market, so I assumed I could quickly undercut. But alas, this guy was obviously monitoring his sell orders. Ah well. let the 0.01isking commence. 


Eventually I realised given the slow turnover of the cap module market, that this guy wasn't going to give up. Ah well, I wanted to go out. Time to be more drastic. I dropped the price by 100,000 isk/pu




Maybe that big drop would put him off. Nope:



Hrmm. He's keen to follow me down. Let's take this further and cut a whole million of the sell price... and what do you know, he cuts his sell price by a whole million as well. 


Well if he is keen to make a sale, a sale he shall make:


And now the market is back under my control - and I will resell his mods for a profit:


K thnx bye!


One word of warning, I have bought out competitors and relisted and gone to bed in control of the market, only to next log in to see my sell orders drowned in a sea of new ones!



^ In cases like that, all you can do is wait for prices to recover!

Till next time, 

cheebs

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