Step one , read maretha's post, it is packed full of truthes.
Step two, What are your buddies doing?, nothing worse than too menny armorsmiths and not enuff weaponsmiths, or vice verca.
Step three, Understand that you will make more money selling your ore and stone than makingin any item. Their is always somebody who will buy the mats to get a skill up, in hopes they will one day be able to make big bux on a Arcnite Reaper.
Understand that most of the folks that can afford the materials for that stuf(high end smighing equptment), are in a guild, thatn most likely has somebody that will do it for "Free"(well no smithing charge at least), or even worse, they will run a isntance and get better gear. Smithing is nice for yourself and your buddies, dont be foold though, they money making jobs are the gathering ones, thier is nothign speical about a specialised smith(my guild has 4,armor,axe,mace,soward)and money comes form "Special" stuff that cannot be eazly recreated, Stuff like the mats for said Armor/weapons. Even if you went armorsmith to make the Fire Resist gear for MC, the lava core and firey core cost more than you can charge for said equptment.
So basicly I am saying, smith for fun not for profit, sure thier is some stuff that sells well, and their is some cash in it for ya, but if you want money, drop smithing, start skinning, and sell that stuff.