Trading: Difference between revisions

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The simple rule of thumb is buy low and sell high! To ensure station trading is performed effectively ensure that the difference your sell order pricing minus the buy order pricing minus taxation still leaves a profit! Setting up buy and sell orders on multiple items minimises risk of market price crashes on anyone particular item. If you can make 20,000isk on an item and manage to trade 100 of these per day this will give you 2,000,000 isk. Do this with 50 different products and this equates to 100,000,000 isk per day!

Start small and reinvest and you will soon see your total isk grow very quickly. When you start to work in billions you can trade higher priced items which can increase your margins and also ~~prices~~ out some of the competition!

Start small and reinvest and you will soon see your total isk grow very quickly. When you start to work in billions you can trade higher priced items which can increase your margins and also price out some of the competition!

====Station Trading Skills====

Station trading is all about volume. Your margins are going to be thin, and you'll need to save money everywhere you can. That means training Broker Relations and Accounting to 5.

If you're going to be engaging in heavy station trading, you will be necessarily entering multiple buy and sell orders each and every day. For this reason, the biggest boost to your profitability per trade will be to reduce your transaction costs to the bare minimum. You do this by training Broker Relations and Accounting to 5, as soon as it's feasible.

Early in your trading career, these fractional percentages have a minimal impact i.e. if trained to level 5, you need to trade 667 million ISK of goods to earn back the 5 million ISK you spent on the Accounting skillbook. As you build your trading volume, however, these reductions are quite meaningful. Without getting into the math, training Broker Relations and Accounting to 5 will increase your profits by 11%.

[http://wiki.eveonline.com/en/wiki/Broker_Relations Broker Relations] - this skill reduces your cost to place orders on the market. The default broker fee is 1.0% of sale value, with a 100 ISK minimum. With each level of Broker Relations, you shave 5% off of that fee, with .75% being the lowest possible fee at level 5.

[http://wiki.eveonline.com/en/wiki/Accounting Accounting ] - this skill reduces your cost to settle sales transactions on the market. The default accounting fee is 1.5% of sale value. With each level of Accounting, you shave 10% off of that fee (or 0.15% of the sale value) per level, with .75% being the lowest possible fee at level 5.

Early in your trading career, these fractional percentages have a minimal impact i.e. if trained to level 5, you need to trade 667 million ISK of goods to earn back the 5 million ISK you spent on the Accounting skillbook. As you build your ~~average~~ trading ~~size per order~~, however, these reductions are quite meaningful. ~~Let's look at~~ the ~~impact of having~~ Broker Relations and Accounting ~~Training to 4 for an intermediate trader (30+ days in):~~

~~''Example with Broker/Accounting skills trained~~ to 5~~:''~~

~~Let's assume you bought goods for 300M ISK and managed to sell them for 360M ISK.~~

~~If you have no Broker Relations or Accounting, your fees are 1.5% of both transactions. That's 300M * 0.015 * 2, or 9M ISK, turning your profit from 60M to 51M.~~

~~With Accounting and Broker Relations at 5, your fees are 300M * 0.0075 * 2, or 4.5M. This means~~ your profits ~~are 55.5M, an~~ 11% ~~increase in profits.~~

~~As your trade volume grows, these skills become increasingly critical and the extra ISK gets into the tens of millions per month~~.

Other skills you'll want to familiarize yourself with include:

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*[http://wiki.eveonline.com/en/wiki/Procurement Procurement], [http://wiki.eveonline.com/en/wiki/Marketing Marketing], [http://wiki.eveonline.com/en/wiki/Daytrading Daytrading] and [http://wiki.eveonline.com/en/wiki/Visibility Visibility ]: These skills allow you to buy, sell and modify orders in stations other than your current one. Note: With these skills each trained to level 2, you can station trade in Hek while docked in Aldrat.

*[http://wiki.eveonline.com/en/wiki/Margin_Trading Margin Trading]: This skill allows you to reduce the amount of escrow required when putting in a buy order, effectively letting you place buy orders for more money then you actually have.

*[http://wiki.eveonline.com/en/wiki/Social Social], [http://wiki.eveonline.com/en/wiki/Connections Connections] - Increases your standing so you pay less ~~taxation~~.

*[http://wiki.eveonline.com/en/wiki/Social Social], [http://wiki.eveonline.com/en/wiki/Connections Connections] - Increases your standing so you pay less in taxes.

Guides:

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 The simple rule of thumb is buy low and sell high! To ensure station trading is performed effectively ensure that the difference your sell order pricing minus the buy order pricing minus taxation still leaves a profit! Setting up buy and sell orders on multiple items minimises risk of market price crashes on anyone particular item. If you can make 20,000isk on an item and manage to trade 100 of these per day this will give you 2,000,000 isk. Do this with 50 different products and this equates to 100,000,000 isk per day!
-Start small and reinvest and you will soon see your total isk grow very quickly. When you start to work in billions you can trade higher priced items which can increase your margins and also prices out some of the competition!
+Start small and reinvest and you will soon see your total isk grow very quickly. When you start to work in billions you can trade higher priced items which can increase your margins and also price out some of the competition!
 ====Station Trading Skills====
+Station trading is all about volume. Your margins are going to be thin, and you'll need to save money everywhere you can. That means training Broker Relations and Accounting to 5.
-If you're going to be engaging in heavy station trading, you will be necessarily entering multiple buy and sell orders each and every day.  For this reason, the biggest boost to your profitability per trade will be to reduce your transaction costs to the bare minimum.  You do this by training Broker Relations and Accounting to 5, as soon as it's feasible.
+Early in your trading career, these fractional percentages have a minimal impact i.e. if trained to level 5, you need to trade 667 million ISK of goods to earn back the 5 million ISK you spent on the Accounting skillbook. As you build your trading volume, however, these reductions are quite meaningful. Without getting into the math, training Broker Relations and Accounting to 5 will increase your profits by 11%.
-[http://wiki.eveonline.com/en/wiki/Broker_Relations Broker Relations] - this skill reduces your cost to place orders on the market.  The default broker fee is 1.0% of sale value, with a 100 ISK minimum.  With each level of Broker Relations, you shave 5% off of that fee, with .75% being the lowest possible fee at level 5.
-[http://wiki.eveonline.com/en/wiki/Accounting Accounting ] - this skill reduces your cost to settle sales transactions on the market.  The default accounting fee is 1.5% of sale value. With each level of Accounting, you shave 10% off of that fee (or 0.15% of the sale value) per level, with .75% being the lowest possible fee at level 5.
-Early in your trading career, these fractional percentages have a minimal impact i.e. if trained to level 5, you need to trade 667 million ISK of goods to earn back the 5 million ISK you spent on the Accounting skillbook. As you build your average trading size per order, however, these reductions are quite meaningful.  Let's look at the impact of having Broker Relations and Accounting Training to 4 for an intermediate trader (30+ days in):
-''Example with Broker/Accounting skills trained to 5:''
-Let's assume you bought goods for 300M ISK and managed to sell them for 360M ISK.
-If you have no Broker Relations or Accounting, your fees are 1.5% of both transactions. That's 300M * 0.015 * 2, or 9M ISK, turning your profit from 60M to 51M.
-With Accounting and Broker Relations at 5, your fees are 300M * 0.0075 * 2, or 4.5M. This means your profits are 55.5M, an 11% increase in profits.
-As your trade volume grows, these skills become increasingly critical and the extra ISK gets into the tens of millions per month.
 Other skills you'll want to familiarize yourself with include:
@@ Line 127: / Line 115: @@
 *[http://wiki.eveonline.com/en/wiki/Procurement Procurement], [http://wiki.eveonline.com/en/wiki/Marketing Marketing], [http://wiki.eveonline.com/en/wiki/Daytrading Daytrading] and [http://wiki.eveonline.com/en/wiki/Visibility Visibility ]: These skills allow you to buy, sell and modify orders in stations other than your current one. Note: With these skills each trained to level 2, you can station trade in Hek while docked in Aldrat.
 *[http://wiki.eveonline.com/en/wiki/Margin_Trading Margin Trading]: This skill allows you to reduce the amount of escrow required when putting in a buy order, effectively letting you place buy orders for more money then you actually have.
-*[http://wiki.eveonline.com/en/wiki/Social Social], [http://wiki.eveonline.com/en/wiki/Connections Connections] - Increases your standing so you pay less taxation.
+*[http://wiki.eveonline.com/en/wiki/Social Social], [http://wiki.eveonline.com/en/wiki/Connections Connections] - Increases your standing so you pay less in taxes.
 Guides: