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World of Warcraft Gold Goblin: The SureShot Technique
The "SureShot" Technique
Investopedia.com, defines the word 'Commodity' as being:
A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.
Based off this definition, the "SureShot" technique was born. Trading commodities in the real world are similar to the trading of commodities in World of Warcraft.
"SureShot," Refers to the sure way to make money. Plain and simple. Commodity trading, covers anything from trading ore to herb, especially in the sense of using those commodities to make specialty items.
"SureShot." Requires no additional work on the Gold Goblin, but is very labor intensive. Not the kind of labor, that has you constantly farming these materials, but the labor in which you must find yourself glued to that Auction House panel, as if your life depended on it.
No matter what expansion, or which patch, Choose for yourself a commodity to exchange. In point 1, I am going to use the example name "Red." "Red," Represents itself as any popular or in demand commodity, whether it be, ore, herb, material, etc.
Point 1 - Calculating Averages
Calculate an Average - A commodity's average should be determined by finding the highest price posted for an item, a median (middle) price, and the lowest price.
Red posted for 50g (highest)
Red posted for 30g (Middle)
Red posted for 10g (Lowest)
We add these 3 prices together to reach 90g, divide that (90g) by 3 (the number of prices we gathered for an average) This gives you the sum of 30g.
30g is our Average Market Price of Red (AMP)
Point 1 - Research
Research the commodity - Research your commodity, find every use, that your commodity has to offer. The more you know about the commodity in which you are trading, the more money you can make from trading that commodity.
For Example, Red, is used in the production of high end enchantments. It can also be used for Engineering and Jewel Crafting.
Researching is a lot like finding a collector for an item you have picked up at a garage sale. You may find an old coffee cup. Your research indicates that the product is sought after by coffee collectors, cup collectors, container collectors etc.
It is Crucial, you know everything about your product.
It is now time to find a buyer for the material in which you have chosen. You now know that "Red," Sells particularly as an enchanting material, but also has the probability that it can sell to a Jewel Crafter or an Engineer.
Point 2 - Purchasing
Purchase your commodity, at the lowest price you can possibly find. This includes, but is not limited to, talking to other sellers (people who have posted a large amount of items on the Auction House), Wanting to Buy in trade chat, for extreme lows on large bulk items.
You are in the buying and selling business, when you cross over to the SureShot technique.
Buy Low, Sell High. You are actually becoming a broker. Now you know the average price of the commodity in which you wish to purchase is 30 gold.
So if you buy the commodity, you want to buy under that average market price. For example:
30g - Buy.
45g - Do not Buy.
15g - Buy.
Point 2 - Selling
You have now purchased your first bits of commodities, at a lower cost than 30g.(AMP)
Now you need to calculate how you want to sell. Do you want to post a high price, close to the highest cost of material with a long wait (market post time). Or do you want to post just a bit over the Average Market Price, and put a short post time?
It's all about how your market reacts to change. I cannot personally speak on all Realms and how their markets react to change. I will say this. If you are able, wait, research, wait again, research again.
Calculate an average several times when dealing with larger amounts of money.
Be Sure To Sell higher than your median price.
If for whatever reason you are finding yourself selling below the average price for a commodity. Be sure that you are selling it for more than your initial investment. You should be able to find this in your Tabs.
This technique can be at anytime tweaked for your gameplay style. It is very possible for you to take this information, tweak it, and build your own strategy. What works for most, usually works for all, what works for some, usually doesn't work for all. Keep that in mind.
Also, do not be afraid to play with the technique a bit. Buy a group of Herb, or Group of ore, Bank it, and wait for the price to go up past your median.
HUGE Example. Herbs outside of the Darkmoon Faire timeframe, vs Herbs inside the week of the Darkmoon Faire. Usually it means a huge increase in price as well as an increase in your wallet! :)