Many peoples just do not know how economy in mmorpg works, so i hear some absurd things like “Instead of trade we have an lottery analogue”. If you want Lottery then buy some cards or go in raid, there you can find a lottery, or in value of card when you flip it. Economy in World of Warcraft works on some principes, and laws.
Economic cycles in World of Warcraft
From server to server the economy can vary widely, but economic cycles work everywhere. I will highlight two of them – a cycle associated with the release of a new patch and daily, tied to the raid time of the most server guilds. After the patch the economy blooms and smells, because it dramatically increases demand – players returning to the game, or go back on their raid / arena main characters, also new equipment and recipes appear in patches. In the first three or four weeks the market has high demand, which swallows almost entire offers. Knowledge of the second cycle provides information about when it is necessary to put the goods that will be purchased with a high probability. In prime time, roughly between 20-00 – 0-00 server time when happy raiders run to auction for stones, chants, flasks or just to sell a new epic boe (bind on equip). This strong demand is maintained for about two – three months, and then goes into decline and quietly goes out to occur again after the new patch.
The man who own this information, do not play the lottery. He played sparingly, understanding the risks and benefits.
“… do not have sufficient financial reserves to eliminate inadequats that lowering the price of the goods …” – What does that mean? Buy product that is exposed at a lower price and then put on the normal price? What for? It will do for you other traders or consumers and align price to average. In “hot” segments, price fluctuations are not too strong, these upstarts has quickly extinguished. However, there is a subtle strategy that allows you to take control of the market segment and for some time to earn on it.
It’s called Deep Undercutting. The point is that in some segment huckster begins to sell virtually at cost, which makes the game not profitable for other traders. And they go out of this segment. Undercutter slightly increases the yield and continues to feed himself in this market. Yes, such a strategy requires money, but personally I have seen this strategy only a few times.
Stay tuned and we will talk about other aspects in my next article!
Other posts about Trading: