Guide to Making money at the Trading Post through active trading

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Drafell Moraxi.7543

Drafell Moraxi.7543

Making gold in GW2 is fairly easy once you get enough seed money. Ideally you will want to start out with about 1g before you want to consider making any trades. Once you have this seed money then you can start trading on the auction house by looking for items with enough of a difference between the buy price and the sell price for it to be worth your time.

If you are going to focus on reselling, you will need to multiple the buy price by 1.177 and round up to the nearest copper. This is the minimum price you will need to resell the item for to break even (BE). I prefer to multiple the item cost by at least 1.24 (T1).

The reasoning for this is that this is the lowest amount that will give you two opportunities to list that item for resale without making a loss; the auction house will cost you 5% of the listing price regardless of if the items actually sells. The auction house also takes a 10% cut from any successful trades from the seller. There is no charge for placing buy orders.

The first listing should therefore be at the higher T1 price, and then at the lower BE price if the market happens to drop. In an ideal world you would multiple the buy price by 1.306 (T2) as this will give you three opportunities for resale to at least break even and two opportunities for making profit.

As some general advice, if you are attempting to sell an item and other vendors drop it below the T2 price, immediately de-list and offer at the T1 price, if it continues to drop below that, again de-list and resell at BE, unless you are really confident that the market is going to recover. If you are just trying to make a quick profit, simply list it for the first time at the T1 price although this can actually act against your favor in forcing the normal market value down.

Quick reference guide:

Buy Price —-—— BE Price —-———— T1 Price/Profit —-——- T2 Price/Profit
6s —-————— 7.07 —-—————— 7.44/0.32 —-————- 7.84/0.66
7s —-————— 8.24 —-—————— 8.68/0.37 —-————- 9.15/0.77
8s —-————— 9.42 —-—————— 9.92/0.43 —-————- 10.45/0.88
9s —-————— 10.54 —-—————- 11.16/0.48 —-————- 11.76/0.99
10s —-—————11.77 —-————— 12.40/0.54 —-————- 13.06/1.10

BE = Break Even Resale
T1 = ~5.4% profit
T2 = ~11% profit
(Hopefully this shows as columns)

As you can see, reselling at 12.4s with a buy price of 10s will only net you a 54c profit which is hardly worthwhile unless you are dealing in bulk trades. You will want to be making about +10% of your buy price per sale (which means ideally reselling at just over 30% over buy price).

I hope this helps some of you, and please and feel welcome to let me know if I have made any errors in my calculations.

Additional tips:

As soon as part of any buy order is partially completed, immediately turn around and re-list the item for sale at the T1 or T2 price point (which ever is lower than the current Sell price). You are going to make most of your money through these rapid trades.
However, watch out for items with a lot of trader activity as it can sometimes pay off to only list 2-3 of that item at a time to avoid market saturation.

Cancel all buy orders once you are done with your trading session as you don’t want the market collapsing on you overnight. This is a really easy way to lose lots of gold.

Don’t make your buy orders too big. It works best to limit your buy orders to a maximum of ten units for any non-crafting materials, again this helps to prevent you holding too much stock in any item in the event of a market crash.

Choose maybe 5-10 different items that are providing a good margin and rapid turnover and focus on those exclusively. If a buy order is not fulfilled within 30 minutes then you will probably want to cancel that order and find something else.

Test each potential trade opportunity by first placing buy orders for 1-2 or that item and then seeing how long it takes to resell. Again, if you cant comfortable resell within 30 minutes then make a note. I would advise just re-listing at slightly above the BE value just to get your money back in these situations.

(edited by Drafell Moraxi.7543)

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Loxias.2375

Loxias.2375

I must admit was a little worried about what you would reveal after the first paragraph. Lol!

That aside, I always get a laugh when someone buys me out of a dropping commodity and you see that exact quantity pop up a second later… just enough higher for them to lose about 5% when it’s all over. (I certainly don’t recommend that, I made that mistake a few times early in game on small ticket goods.)

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Drafell Moraxi.7543

Drafell Moraxi.7543

I made the same mistakes. I see a lot of people just multiplying the buy price by 1.15 and reselling at that amount, not realizing that they are actually making a loss.

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Prophet.6954

Prophet.6954

I noticed you didn’t add/factor in the hidden 10% tax for selling things?

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Drafell Moraxi.7543

Drafell Moraxi.7543

I noticed you didn’t add/factor in the hidden 10% tax for selling things?

That is factored in to the OP values. I just didn’t think to mention it.

I will update the OP.

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Sprinks.2437

Sprinks.2437

Some good advice. I would add to have a good amount of patience if you’re going to attempt to play the market. I can’t tell you how many times I’ve heard of someone dumping their stock of an item at a lower price (and at a loss) simply because someone posted at a lower price. Often times, the a particular market will rebound and your items will sell.

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Drafell Moraxi.7543

Drafell Moraxi.7543

@ Sprinks – Although that is a valid point, I wouldn’t recommend doing that unless you have a good feel for how the market flows for any given item.

If you follow the basic advice from my posting, you shouldn’t really make a loss unless the market really crashes in a given area. Any small losses should easily be offset by the profits you make.

(edited by Drafell Moraxi.7543)

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Lucubration.8361

Lucubration.8361

I have to admit I’m surprised that a savvy trader would give away advice on a public forum. But thanks :p

Guide to Making money at the Trading Post through active trading

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Posted by: TotalLamer.2470

TotalLamer.2470

Do you really even need all that much “confidence” in it rebounding though? When it comes to trade goods, it seems to me they follow a pretty usual cycle in a 24h period. With the highest prices coming at prime time and the lowest coming in the early morning.

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Esrever.8613

Esrever.8613

Most decently priced items are crashing due to bots and just general availability. I wish graphs of item price histories were up for the trading post.

sllaw eht no nettirw gnihtemos saw ecno ereht

Guide to Making money at the Trading Post through active trading

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Posted by: urzen.7096

urzen.7096

I have to admit I’m surprised that a savvy trader would give away advice on a public forum. But thanks :p

I agree. Not really a fan of telling people how to win. Let them earn their gold.

Sanctum of Rall

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: Plutonium.1308

Plutonium.1308

Buy during the week(tue, wed, thurs) and sell on the weekend(sat, sun)

More folks on during the weekends.. more suckers…. er… “inexperienced traders” and more undercutting during the week due to lack of churn(turnover).

Observe Adapt Overcome
[FTF]Danke Bitte

Guide to Making money at the Trading Post through active trading

in Black Lion Trading Co

Posted by: lackofcheese.5617

lackofcheese.5617

Most decently priced items are crashing due to bots and just general availability. I wish graphs of item price histories were up for the trading post.

Use GW2Spidy for graphs.

Soft wood, for example, is going up rather than down.