This is not going to be an article on the latest decks or about some rogue creation; you will find one reference to the metagame, and I won't even mention U/G Madness or Sligh. Rather, this article is about something that underlies the game of Magic as a whole - something that many people say is half the fun of the game.

That something is, of course, card trading.

One of the brilliant concepts in Richard Garfield's creation is the ability to swap cards with other players. The saying goes that imitation is the ultimate form of flattery - and many other trading card games have emerged because of the beauty of this idea. I'm sure that everyone has enjoyed being able to get the cards you want without blowing the Magic budget, offloading the rares of your hated color in exchange for"real" cards, or even breaking the ice with other players at a pre-release or tournament on the basis of doing some trades. Trading is an enjoyable aspect of the game, and can be nearly a game in itself.

But before we head down to the local store and pull out the trading binder, a few words of caution: Everyone has probably had their own"bad trade" experience. I still remember the day when this stockbroking friend of mine innocently swapped me a Nettling Imp for a Morphling (you know who you are!). Okay, so I had been playing for 1 month and was getting excited over Craw Wurms! But bad trades still happen far too frequently to more experienced players as well.

When I started my full-time job in finance, I came to realise that trading cards is in many ways similar to trading stocks. The values of cards go up and down based on the sentiment of players, on the metagame, and even on the latest new deck off the net.

One example is that of Mobilization. This card had an IPO as explosive as some of the dot.com stocks in the Internet boom of 1998. People were falling over themselves just to get their hands on a copy, and you could trade them for anything you wanted. Eventually it dawned: Mobilization is just not that great.

The point is that like stocks, the mood of the market (which is the mood of Magic players) determines the trading value of a card - and that the market doesn't always get it right. With the availability of great Magic resources on the internet these days, it is very easy to get caught up in the hype and not think too critically. Just like in the world of big money, those who think independently do better than the rest of the pack, or at least break even on their trades.

So how can we avoid getting burnt by bad trades that we will later regret? I have looked at the strategies that professional traders, who risk millions of dollars on each trade, use in their decision-making process and then adapted it to the game of Magic. Here are a few things to think about before making your next trade:

1. Decide What Sort Of Player (And Trader) You Are
Professional traders and dealers always specialise. They can be stock traders or bond traders, but never both. The same applies to players. Figuring out what formats you like to play will help you avoid bad trades because you know what your priorities are.

As part of this process, compile a want list. Personally, I get easily enticed into trading for some card that I didn't set out to get, and really need the discipline of writing a list; this is easier for a tournament player trying to get the fourth copy of Mutilate or Nantuko Shade, or for someone putting together a set.

If you don't play or plan to play in sanctioned tournaments, you open up a world of opportunities to get older cards at a bargain. The trading value of cards that have rotated out of Type 2 and Extended formats is usually diminished... But have the original dual lands really lost any of their power?

2. Know The Value Of The Cards
This is a really obvious one, but it is not always easy. Ask a few different players how much they think a card is worth and you can get very different answers. The problem is that unlike the stockmarket, there is no ticker on CNN telling you the going price of Braids, Cabal Minion... But there is a way. The golden rule in the finance game is that something is worth as much as someone is willing to pay for it. This applies to cards as well as to stocks.

Let me digress to small example. In a local store I saw a card in the display cabinet with an $8 price tag. However, flipping through the folder, I saw the same card for $6! Is the storeowner insane? No! In fact, he was astute and understood the golden rule well - if someone is willing to pay $8 for that card then they would have bought the one from the cabinet. However, another person who would only pay $6 would pass it by, but quickly snap it up the moment they saw it for $6. If both were priced at $8, the shop owner loses a $6 sale. If it was at $6, he makes less profit on the first buyer.

What is the value of this card? Is it $6, $8 or something in between? The most important thing to remember is the value of the card to you. What are you willing to pay for it? This will depend on factors such as the type of player you are and what sort of budget you have. For each card that you want, look around the net on great sites like StarCityGames, and around whatever card shops there are in your area to get an idea of the going price. You can be guaranteed that there will be differences in prices.

The lowest price at which you can practically obtain the card is your value. Evaluate the cards that you are receiving according to this value. If you do the research (which is very easy on the net), you will safeguard yourself against getting ripped off.

However, cards being traded away should be evaluated at the other person's value. If someone needs that card one hour before the start of a tournament, they probably value it higher than you do! Factor this in.

This is not a recommendation to rip people off, but is a fact that lies at the heart of why trading can be such a good thing: Both parties can feel that they are in a better position than before, and in fact they are.

3. Negotiate Your Deal
Wheeling and dealing is perfectly normal and can be fun. Make a high first offer and sound the other guy out, and eventually haggle your deal to a reasonable level.

A factor that is often forgotten is the condition of the cards. This can be hidden behind slips, especially when they give you the card still in the slip. Some people don't bother, but you should make the effort to check. If it is not mint, the value should be reduced accordingly. The best time to mention this is at the final stages of negotiation."Sweetening" the deal with uncommons and foils can also be saved towards the end.

I hope these points help next time you are in the card shop. May all your deals be sweet!

Alex