Don't trade with him…
Don't trade with anyone is my suggestion - unless you can't hurt him…
Especially in the bandit camp you can lure almost anyone to a secluded spot, kick his ass and rob him… save your game before any of these raids to find out who will still talk to you and who will stop offering you things… I think the blacksmith is someone you can't hurt, the girl you can't hurt, and the best fighter there you shouldn't fight because I think you will lose dialogue options with him but everyone else is pretty much fair game and will still be friendly to you after you rob them - they may give you a sharp comment the very next time you talk to them before going into conversation - but other than that it will be alright… some of their comments are pretty funny… especially when you beat the living crap out of someone and then ask him if "anything interesting happened today?" and he tells you "nothing happened" - after you just beat him down and robbed him
PS
I think once someone calls you by the name "Fucker!!!" he will not be your friend anymore…This really happens
I love this game…
PS#2
You should probably keep on to any gold you find so you will have enough to spend on training…most of the items, jewelery, amulets, scrolls and good weapons and shields are found throughout the land . You only HAVE to buy few items…if any at all… I still haven't had a need to buy anything 27 hours into the game (still chapter one). I think I will start the game all over though, because I used to eat some plants that boosted your stats and I really shouldn't. I should have kept them and learned alchemy to make potions out of. I also wiped out almost the entire map without a shovel or lock-picking ability and now I don't really want to revisit those barren places for the loot and I have no indications of where it is as far as seeing what kinds of creatures are guarding… This time I won't even talk to Sara on the shore before I go and:
1)Don't Kill anything and don't talk to anyone unnecessary for these following abilities
2)Find a shovel (from graveyard with skeletons close to Jan's hut I think is close by)
3)Learn lock-picking and find lockpicks (in swamp or town)
4)Learn sneaking (in swamp or town)
5)Learn Hunting and find tools for all types of trophy collecting (to maximize each and every kills "earning potential") (remember - try not to kill anything) (in swamp or town)
6)Learn prospecting and find tool (in harbor town - there are ways of getting in and out as pleased)
7)Learn pickpocketing (in swamp or town)
8)Get back to the beach, make a permanent saved game, wake up Sarah and finally start the game (probably also more equipped and leveled up enough to start the game and not feel as fragile as you would have normally)