MSTC · HOW-TO

How to Avoid Overbidding: A Scrap Trader's Checklist

A simple pre-bid checklist can prevent the single most common and costly mistake new traders make.

5 min read Action Guide By LeegAl Advisory Team

A simple pre-bid checklist can prevent the single most common and costly mistake new traders make.

How To Approach This

Have I researched genuine, current market value for this specific material and grade, using multiple reference points?
Have I calculated my true landed cost, including logistics, compliance, and a realistic margin — not just the raw material value?
Have I set a firm maximum price before the auction begins, and am I prepared to walk away if bidding exceeds it?
Am I financially prepared to complete payment immediately if I win at my maximum price, without hesitation or scrambling for funds?

Should this checklist be used for every single auction?

Yes — consistency in applying this discipline, even for smaller or seemingly low-risk lots, is what builds sustainable trading habits.

What's the most commonly skipped checklist item?

Calculating true landed cost including logistics and compliance, rather than just the raw material value, is frequently underweighted.

Talk to LeegAl's WIN advisory team about mstc e-auction participation — clear process, transparent pricing, no obligation.