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Some basic trading rules that people tend to forget
NoTimeToWait
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In a nearby thread I saw a very debatable and thus interesting post that received many agrees from other people. The post below wasn't addressed to me, but I think this post rises a good question that needs to be answered
There is a basic trading(not only) principle: don't put all eggs in one basket. While spending ALL your money to buy motifs cheaply to sell them later at a greater price could yield paramount profits, it's just not a very good idea to do. Because you are putting substantial part of your wealth into a single market segment. Doing things like this is prone to losing lots of gold in the long run. Moreover the wealth gained from selling them later would be spread over time. Which also impacts your available assets for use when another opportunity appears for other.
The second principle: no knowledge is set in stone
No information no matter how plausible is guaranteed to be true
So, basically "knowing full well" is just not working. One can make market projections based on this assumption, but in the end, there is always a chance to be wrong.
So the third principle that is derivative from the previous two: diversify your assets
Because of this rule whales can't and won't buy all the motifs from the market.
It's true that a player in a game can take as big risks as he wants, but taking measured risks is different from just chasing high profits. To accrue decent amount of wealth is not enough to be a successful trader. One needs to develop his wealth. Thus, taking unnecessary risks is a dangerous game which often leads to greater loss later. And there will be losses. Even the best players don't have 100% winrate.
And the forth principle is: be prepared for the loss and be ready to mitigate it
TLDR: Yes, right now is a good opportunity to spend millions on motifs (and reasonable thing to do). But putting all your gold into a single market segment is a bad idea.
houjo2000b16_ESO wrote: »Frankly, if you really are so good at flipping items, why aren't you spending your millions on buying all the motifs on the market right now knowing full well in two months all their prices are going to skyrocket?
There is a basic trading(not only) principle: don't put all eggs in one basket. While spending ALL your money to buy motifs cheaply to sell them later at a greater price could yield paramount profits, it's just not a very good idea to do. Because you are putting substantial part of your wealth into a single market segment. Doing things like this is prone to losing lots of gold in the long run. Moreover the wealth gained from selling them later would be spread over time. Which also impacts your available assets for use when another opportunity appears for other.
The second principle: no knowledge is set in stone
No information no matter how plausible is guaranteed to be true
So, basically "knowing full well" is just not working. One can make market projections based on this assumption, but in the end, there is always a chance to be wrong.
So the third principle that is derivative from the previous two: diversify your assets
Because of this rule whales can't and won't buy all the motifs from the market.
It's true that a player in a game can take as big risks as he wants, but taking measured risks is different from just chasing high profits. To accrue decent amount of wealth is not enough to be a successful trader. One needs to develop his wealth. Thus, taking unnecessary risks is a dangerous game which often leads to greater loss later. And there will be losses. Even the best players don't have 100% winrate.
And the forth principle is: be prepared for the loss and be ready to mitigate it
TLDR: Yes, right now is a good opportunity to spend millions on motifs (and reasonable thing to do). But putting all your gold into a single market segment is a bad idea.
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