From Rags To Riches #2 - "Progress is slow, but I'm in it for the long haul"

Three days after creating and beginning my trading endeavor with Rags 2 Riches, progress and profits have been made, but not as much as I would like. As all characters do, I started out with 5,000 ISK and 13 maximum open market orders via Trade 2; Trade 3 was trained eight hours later, boosting me to 17 maximum orders, and I had invested my 5,000 ISK into a few buy orders for skill books in Dodixie.

Thus far, I have managed to turn that 5,000 ISK into 447,286 ISK, which is a 8845.72% increase in wealth. These profits are good, but not as high as I would like them to be - with Amarr Station Trader, I had turned 5,000 ISK into 2,371,037 ISK in roughly the same amount of time. With that being said, there are a few considerable differences between then and now:

  1. Alpha clones and new characters start out with more SP than they did during late 2014, so many of the starting core and support skills that would require skill book purchases are no longer necessary. This means less people are buying and selling basic skill books, like Astrometrics, Survey, Motion Prediction, High Speed Maneuvering, and so on.
  2. Dodixie is a decidedly less busy trade hub than Amarr, especially in the basic skill book market. Very few of my buy orders have been contested, and many of the buy orders below mine have not been updated in weeks.
  3. The end of 2014 followed the tail of a large Christmas promotion that granted cheap game time for new characters, which meant a large number of new characters were being created, which also created a demand for basic skill books.
Given these three reasons, it makes sense that I'm currently behind the Amarr Station Trader project.

My previous wealth calculation does not include assets currently in sell orders; normally, I would include the value of these assets into my wealth calculations, but given the incredibly high margins that skill books in trade hubs have, this would artificially increase my wealth. Once I begin trading items with a relatively normal margin, I plan on including assets tied up in sell orders into my wealth calculations.

My wealth calculations will be exactly the same as they were in the Amarr Station Trader project. There are a multitude of ways to calculate a person's wealth, but I have settled on the formula below:

Wealth = Escrow + Wallet + (Sell Order Total * 0.8)

This formula is inspired by Croda, as it is the method he used to calculate his wealth when he initially started his blog. It is fair and accurate, as it takes a 20% provision to the total ISK invested in sell orders. This is necessary because items that I am selling are not ISK, but are valued in ISK; this value is determined by the market. However, most of the items that I am selling have a margin of 20%, which means that the items can easily be translated back to ISK by selling them to buy orders. This allows me to accurately track the accumulation of my wealth over time and prevents me from cheating the system (such as my example earlier in this post, where I have sell orders for items with huge margins that most likely will not sell at that price.)

I plan on creating another blog post tomorrow that crunches numbers on what kind of returns I will need to see on my trading in order to convert from an Alpha clone to an Omega clone. Stay tuned for that!

Current Wealth: 447,286 ISK
Evernus Balance Graph: