This week I found myself in the middle of two wardecs and one more on the way. The limitation this put on my hauling ability forced me to focus on citadel-station trading as opposed to exporting to spoke markets. I thought I would take this opportunity to identify stocks that would be more suitable as long term investments as opposed to the usual week-long trades that I have been engaging in. Luckily I was able to find suitable raw and processed materials to invest in. I would like to go over how to identify such items using the in game market charts. First, let’s see what kind of information is available from this tool.
Moving Average – The chart displays two moving averages, 5-day and 20-day. This is a trend following indicator that uses the past 5 and 20 day prices respectively. When the the 5-day moving average crosses under the 20-day average, that is a signal to buy and vice versa. This can be seen in the graph at points 1 and 2 respectively.
Donchian Channel – This indicator is shown as the light red filled areas in the graph. The highest high and the lowest low trades for the period is what forms this indicator. Due to the nature of regional outliers, I find this indicator as unreliable and hardly ever use this in my decision making process.
Median Day Price – The median is the price at the mid-point: 50% of trades that day were at a higher price, and 50% at a lower price. This helps to give an idea whether the bulk of trades were near the higher or lower end of the range on that particular day.
Volume – This indicator is displayed as the green vertical bars in the bottom of the chart. Besides showing you the daily traded amount for the time period, this enforces the validity of a potential price swing. Using the example, we can see the change in price trend as shown in 2 is supported by the added volume depicted in 3.
Although the market charts display some key information that would help you in determining whether a stock should be bought or sold, be careful when basing your decision solely on these. The information in the chart only displays information on completed trades, making it a strong historical tool. Don’t forget to find relevant information that might sway the price of the stock you are investigating. Do your best to discover potential market changes due to module stat changes, harvesting method changes, war, or other social activities.
I hope this information will help you find attractive mid to long term trades in the future.
Now let’s see how we did during this war dec week.As you can see, I was more active this week due to the nature of station trading. Although I was not able to export to spoke markets, I instead used the extra time I had to focus on finding new items to trade. I mentioned a few weeks ago that I would see about the viability of exploration loot. With that, I was able to find Decryptors that had a very healthy price spread. The volume and availability of these items make them a suitable stock for my particular style.
Another set of items I added to my repertoire are medium hull weapons. I found a fair amount of success in trading medium sized hybrid weapons and artillery cannons. I was pleasantly surprised at how quickly I was able to complete those trades.
Although I was only able to conduct station trading this week, I was not expecting to make as much profit as I did. The war decs have been a blessing in disguise. Due to this week’s results, I am encouraged to focus on station trading and start expanding to longer term investments. I believe this will round out my general trading portfolio as it encompasses various time horizons.
Currently, I am looking into the raw and processed materials markets with the intent of holding on to these stocks for the duration of a price swing. Honestly, I am new to the whole investment scene. As you can see from my history of trades, I live in the price spread of items that I believe I can flip within the week. It never ceases to amaze me how many varied facets there can be to the same activity. I look forward to another adventure in New Eden.
Thank you for reading. Good luck, and happy trading!