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  1. #1

    Trading Tutorial

    A guide to trading.
    Hi, so you want to be traders, but don't know where to start? Well, here is a little tutorial for you in order to help you stop loosing, and hopefully start profiting.

    Okay, I suppose you already know what a trader does. However, if you aren't sure yet what traders do, they basically buy resources, such as guns, armor, etc. from others player in order to to resell it. - Basically, its a service offered to players.

    So let's get started. A principle to consider when buying resources is this:

    When you are buying stack-able resources (muscle oil, etc.) and limited (L) items, it's important to know what percentage you hope to buy the resource or item at. For example, let's say Animal Eye Oil is at 102% MU; Mark Up (MU for short) is calculated like this: TT Value + % = X. For example: Let's say I have 100 PED of Animal Eye Oil (That's without any MU; solely TT Value). To count the final price of my 100 PEDs of Eye Oil, I will do 100 * 1.02% = 102 PED.

    In order to calculate Unlimited items, we do TT Value + PED. For example: Let's say I have an Omegaton A102 Amplifier with a TT value of 30 PED, and the MU for it is currently is curently TT + 50 PED. - It's basic math, we just do 30 + 50 = 80 PED.

    Now for the more advanced part of the guide:

    At first you will need to target one or two things which to buy and sell, at a maximum, since you are not rich like some "big" traders and so shouldn't buy too many things at once. Okay, for example, let's say you start by trading Crude Oil and Lysterium. Hopefully you already know to go to Twin Peaks and put into the Trade Channel, "I'm buying Such and Such." e.g. "I'm buying Crude Oil and Lysterium @ TP." Now, some people will come to trade with you, but how can you determine the price you will be buying those resources at?

    Well, first we need to talk about how much you will be selling those resources for: Since you are just starting out with trading, you will want sell at the Auction House, assuming you don't get extremely lucky and have somebody come and ask you if they can buy from you; something which hardly ever happens.

    So, you need to count at how much you will sell what you buy, so lets say you will sell your oil for 104% (That's TT + 4% of MU) at the Auction House. You need to determine the total PED return. Now then, at the Auction House you are charged a fee (for putting your item onto the Auction), and this can be a big disadvantage; which is why you need at least 100 PED worth of whatever you are buying.

    Okay then, let's use the example of Crude Oil again at 104%: 100 * 1.04% = 104 PED, so you're fee will be 70 PEC. Therefore, you have a real return of 103.30 PED. If, then, you decide to buy Crude Oil at 103.4%, you will lose 10 PEC per transaction. Now, as we already know, we get a real return of 103.4% for 100 PED of Crude Oil on the Auction; so we can buy Crude Oil for 102.4%: It's still fair and you make one PED on every 100 PED, but wait, it's not finished yet: Another things you need to know is the more you sell at once the biggest profit you will make.

    Let's say you make 3.4 PED on a 100 PED of Crude Oil, if we take a look at what you would have made with 200 PED, we see this: 200 PED * 1.04% = 208; subtract the Auction fee of 90 PEC and you end up with 207.10 PED. Remember, we had a return of 3.4 on 100 PED, and 3.40 * 2 = 6.80, but for 200 PED we actually got 7.10 PED!!!

    ------------------------

    Some more advice for you: When you are starting, you should always try to have the best price: it's the biggest mistake think only about profit. You want to be fair, so my advice is go 1-2% under weekly MU some time. Maybe a little lower, depending on your calculations and what you are selling (With higher MU you can drop your price a bit further.). Also, if somebody asks for more PEDs, or tries to manipulate you in any way, always stay at your price! You are not here to make friends, you are here to make profit.

    In conclusion, here is what you have to do (not per se in this order, though):

    Do your research.
    Stay at what you say.
    Trade two items at max to start.
    Sell in high quantities.
    Count everything (Auction fee, MU, everything)!

    Here are some tools that may help you:
    Auction Fee Calculator
    Fast Trade

    This Tutorial Come From http://www.entropiatraders.com All rights Reserved

    Special Thanks to BattleAxe for his correction
    Last edited by darksador; 12-19-2012 at 21:26. Reason: Tutorial rewritten by BattleAxe

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  3. 11-23-2012, 17:45
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  4. #2
    Young
    Joined
    Dec 12 2012
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    [Removed]

    The OP edited his first post, so no reason to keep this.
    Last edited by BattleAxe; 12-19-2012 at 23:57.

  5. #3
    Thank you

    Im gonna update my first post with yours really better written then mine since english its not my primary language

  6. #4
    Young
    Joined
    Dec 12 2012
    Posts
    18
    Quote Originally Posted by darksador View Post
    Thank you

    Im gonna update my first post with yours really better written then mine since english its not my primary language
    Not a problem.
    Awesomeness comes in many different shapes, sizes, and forms; It`s just battleaxes are the main one.

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