Tuesday, September 13, 2016

How to trade in a Bear Market

As mentioned in a previous article, the mtgo market has continued to decrease in valuation.


So today I'd like to provide some tips on how to trade in a bear market.

1.  Be very selective on your purchases by purchasing cards that are fast movers, because what you buy will probably decrease in value.  
2.  Flip your cards as quickly as possible.  Again, this is because the card value will probably decrease in value.  So you want to either make a small profit or take a small loss as quickly as possible and move on to the next sale.
3.  Decrease your profit margins (lower the gap between sell and buy price) to increase inventory turns.
4.  Purchase cards over time to average down purchase price.  For example:  your bot might buy 4 quantities of a certain card, now set the buy limit to 2 or 1 quantity instead.  Then increase the buy quantity over time as prices come down so you can average down your purchase price.
5.  And of course, always maintain a certain amount of tickets on your bots at all times regardless of a Bull or Bear Market.  This builds customer loyalty and confidence in your bots.


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