Tuesday, March 06, 2012
Friday, December 16, 2011
So it came to pass, in a round-about fateful way that only destiny itself could manufacture, that I came to learn the ropes of trading from a game, a simulated market, but with participants of all kinds that you would find in the real world represented in it. To succeed in such a market, virtual or otherwise, you have to learn to outsmart your opponents. To beat them to the punch, and to persevere in seeking out opportunity where they didn't even think to look.
Here is an some example trades in which I am rather proud about. I know it is tradition for traders never to give out trade ideas, as they guard these as close as magicians guard their secrets, but heck it's just a game and I have many more secrets in the markets that I have up my sleeve that I would not share with the general public. (if you are truely a winner, you will learn them yourself)
This next one is my most recent win. On Dec 1st 2011 CCP released new battlecruiser class ships which could mount battleship guns (one larger class than normal battlecruiser guns) That's all fine and dandy, but as any good trader knows, where there is a market for new goods, there is profit to be made. I quickly did a scan of the most popular battleship guns in the market looking at the past historical trading volumes. Of the highest was this gem of an item below. This gun was trading at around 3.5million several days before the release of the new ships. I quickly put down several hundred million in buy orders and managed to score quite a large lot of them at the 3.5 mil mark. 2 days after I did so, the price started jumping up as players started fitting out their brand new ships. As you can see below, the price has almost doubled.
Thursday, December 15, 2011
If you were like me, you probably just put all you cash into a couple of penny stocks and hoped for the best. New entrants into the market are always clueless. The markets is something of a game for the driven, the bold, the beautiful, and the risky. The tiny numbers in the newspaper was all we had to go on, what determined the winners from the losers. That and Lotus 123.
Remember a little time later on a small company called yahoo came along and gave us the gem which is yahoo finance section which would provide free charting tools so for the first time ever we could visualize our stock picks and their past history? It was a godsend, and back seat investors popped up overnight. Case we all know that past performance is a great indicator for future gains. (disclaimers be damned!)
Well fast forward to the teenies, and we have EVE online. At first glance it's just a space mmo, where the primary goal of players is to get a bigger ship than others, blow them up, amass wealth, and build empires. On close inspection though one finds a hidden gem almost created and sustained as an afterthought to this virtual ultra capitalist economy, which is, a working virtual market. Note that I qualified it with "working" as there are plenty of games out there tooting a virtual economy including WOW and others. But in truth, those are all false economies as they lacked a free market. Additionally the economy of the other games are flawed because the basic building blocks of the economy ( raw materials ) required nothing other than time an effort to obtain, and there lacked a system of private ownership of property and land, thus private means of economic development. Also, not to be overlooked is the fact that you have a bunch of snotty nosed teens just wanting to pwn orcs in the game and lack of a sophisticated expert market participants. In EVE you have for the first time all these proponents and thus a virtual market is born.
You have speculators and hedgers, consumers and producers.
And thus we finally have a game where one can truely test ones mettle at guessing the markets. And playing the stock market game. It's taken 20 years but it's progress over the financial section of the local newspaper.
Tuesday, December 13, 2011
Saturday, October 29, 2011
Too much greed is bad. But no greed at all is just as counter progressive.