How to invest (tutorial)

How to invest (tutorial)

in Black Lion Trading Co

Posted by: Malar.8693

Malar.8693

So, basically, lots of people are asking how to make gold via the TP. Obviously there is direct flipping, which is quite hard and risky and requires keeping your markets secret, but there is also INVESTING, which is a long-term gold maker and isn’t risky at all.

There are TONS of 9-15 copper items on the market, some are basically just above the merchant price, so are consider “zero-risk” because they can’t really lose value over time.

Here’s an example:
Name: Pile of Shimmering Dust
Current Price: 11c
History&Comprehension: This dust is mainly used to convert T1 material (tiny fangs, venom) to T2 material. Obviously no one needs these materials right now, so the price of dust is low. However is you look on GW2 Spidy, this item had a huge peak up to 1s90c over the past 10 months because T2 materials were in good demand. If this was to happen again, people would pay a good price to get those materials, so why not stock on?

Like in this example, it is always important to understand the context of the item and the price before investing in. Some items are more likely to be desired than others, and some items have obviously no purpose so people aren’t buying them.
Crafting material are a good investment because the developpers are constantly releasing new recipes, event sinks or making existing recipes more desired via new ones. It is however still a complex market which requires thinking before buying.

Some other examples:

Tier 1 materials:
Tiny Claw – 26c
Tiny Fang – 11c
Tiny Scale – 55c
Tiny Totem – 36c
Tiny Venom Sac – 10c
Bone Chip – 19c
Vial of Weak Blood – 30c
So I’ve put all T1 prices on this list to show you that some are actually cheaper than others. From their history, their prices seem to vary anywhere between 10 copper and 1 silver. As I said with shimmering dust, they can be converted into T2 materials easily, which are sometimes more wanted and less supplied. Two of these items are currently at their bottom price: Tiny Venom Sac & Tiny Fangs roughtly at 10c. They could go back to 30-40c easily, for a 3x profit.

Food ingredients:
Slab of Red Meat – 13c
Head of Lettuce – 9c
Cinnamon Stick – 3c
Beet – 13c
These 4 items are cheap cooking material (these are only examples, there are more like this). The cooking market is quite easy to understand : players want food to buff their stats, the food requires ingredients, the ingredients have a price based on demand and supply. Except those items are currently oversupplied because there is no huge demand for it, because they are not involved in any recipe that produces food with interesting stats for the top players. HOWEVER, other ingredients were sitting at the same price (3-15c) and became expensive because new recipes were introduced. Carrots for example went from 10c to 1s, because they became useful.

As a real example, some time ago I invested a few hundred gold in Rawhide Leather Sections (3-4c) and Thick Leather Section (8c). Then came the current event, Festival of the Four Winds, which created a new demand putting Rawhide leather at 80c. Unfortunately most of my stocks were Thick Leather, which only reached 30c, so in the end I only received 1500g (could have been 15k gold if I had focused Rawhide).

However what you need to understand is:

- There’s always a risk that the price of an item NEVER rises and stocking things takes a lot of room that you could use for other items. Some items have never been useful since release (Slab of Red Meat and its flat curve…) and could not rise for another 2 years. Or they could receive a new recipe and become the most demanded item. Investing is a bet.

- Massive investing requires organization, especially when it comes to stocking items. You could use a second account (not sure if approved by ArenaNet) or simply have more characters and equip them with 18 slot-bags. You can also buy more bank space or create one guild per character and open guild banks. The trading post has also a potentially unlimited pickup space, so if you buy items massively and let them in the pickup tab, they won’t consume any of your space. However if you do that you’ll realise that it is very inconvenient because you won’t be able to get any more items or gold from the TP until you pickup everything you have ordered. Well, the morale is, once you get profit, it’s a good thing to reinvest a part of the gold into more space, because more space == more stacks == more profit.

(edited by Malar.8693)

How to invest (tutorial)

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Posted by: balmung.7801

balmung.7801

At what point would you consider investing to be more lucrative than flipping? I started playing a couple of weeks ago, and so far I have gathered approximately 150g by flipping. Currently my capital is growing at a rate of approximately 10% per day, although it was initially much higher. Even if an investment resulted in returns of ten or twenty times the initial capital, the waiting times can be months or years. As such, a constant growth over the same period of time would result in greater returns. HOWEVER, as capital increases maintaining constant percentage growth becomes more difficult. New markets must be found, and managing different assets becomes time-consuming and repetitive. Since finding potential markets is difficult, the percentage growth from flipping slowly decreases. Therefore, there must be a point at which the returns from investing become more lucrative than those from flipping. Judging when this point occurs will be difficult for one not already accustomed to investing in the game’s markets. As such, any information or advice you could give as to when to start investing would be appreciated. While I understand that it will depend on the individual and their abilities, a rough estimate would be invaluable.

How to invest (tutorial)

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Posted by: Vol.7601

Vol.7601

On the same scale I don’t think investing/speculating can compete with flipping 99% of the time. But for someone like me, who doesn’t have enough time in the day to keep track of markets or don’t find flipping mildly interesting, investing is the best alternative.

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Posted by: ZudetGambeous.9573

ZudetGambeous.9573

I personally find flipping boring and tedious so I never do it. However I keep a wide variety of investments. The thing about investments is that they require change to drive your profit.

No patches = no profit. At the moment i’m sitting on a lot of investments, but none of them are going to be sellable until S2 starts and things start changing again. This usually isn’t a problem due to Anets fast paced 2 week release schedule, but this break has slowed things down.

How to invest (tutorial)

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Posted by: Malar.8693

Malar.8693

At what point would you consider investing to be more lucrative than flipping?

Well once you got more than 1000g, a lot of experience with items to determine which will rise sooner, and use the TP technique to avoid losing slots, sky is the limit.

How to invest (tutorial)

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Posted by: Vol.7601

Vol.7601

I personally find flipping boring and tedious so I never do it. However I keep a wide variety of investments. The thing about investments is that they require change to drive your profit.

No patches = no profit. At the moment i’m sitting on a lot of investments, but none of them are going to be sellable until S2 starts and things start changing again. This usually isn’t a problem due to Anets fast paced 2 week release schedule, but this break has slowed things down.

Yeah I’m still waiting to unload all my stacks of crystals and orbs. It’s been way over a year now ;/

Stupid ascended jewelcrafting/legendary trinkets getting delayed..

How to invest (tutorial)

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Posted by: Rauderi.8706

Rauderi.8706

Easy mode: Buy high, sell low.

/sagenod

Many alts; handle it!
“I’m finding companies should sell access to forums,
it seems many like them better than the games they comment on.” -Horrorscope.7632

How to invest (tutorial)

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Posted by: Wanze.8410

Wanze.8410

Hmmm, first you link the “leaked” LS season 2 here on the forums, which basically suggested to invest into t2-5 fine mats as well as jewelling and cooking mats and now this topic from you that suggests to buy the exact same materials.

Trying to push prices a bit?
At least this guide is somewhat helpful to some people, so it has its place.
I usually shouldnt be the one to call you out on it anyways, i did it many times.
And i dont think there is much wrong with it, either.
I started a discussion on many items that i invested in.
And i found out that the best tactic to spike interest in them is to be honest about why you invest in them.
In the end, everybody has to make his own decisions in what to invest in.

Tin Foil [HATS]-Hardcore BLTC-PvP Guild
Bloin – Running around, tagging Keeps, getting whack on Scoobie Snacks.

How to invest (tutorial)

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Posted by: Beleth.8249

Beleth.8249

Hmmm, first you link the “leaked” LS season 2 here on the forums, which basically suggested to invest into t2-5 fine mats as well as jewelling and cooking mats and now this topic from you that suggests to buy the exact same materials.

Trying to push prices a bit?
At least this guide is somewhat helpful to some people, so it has its place.
I usually shouldnt be the one to call you out on it anyways, i did it many times.
And i dont think there is much wrong with it, either.
I started a discussion on many items that i invested in.
And i found out that the best tactic to spike interest in them is to be honest about why you invest in them.
In the end, everybody has to make his own decisions in what to invest in.

I was waiting for someone to spot this^^

12/5/14 Legendary