Investing Guide
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What Is Investing?

Investing is basically following GE market trends to predict which items will go up in price, and then buy that item expecting that in the long run you'll be making a large amount of profit. This method is usually riskier than other forms of merchanting and requires more patience, but often it has the highest payout. For example, if I buy three party hats expecting that they go up in price by 300m in a few weeks, I'm guessing that in a few weeks I'll be able to make 900m. However if in a few weeks they go down in price by 100m I will have lost 300m. Again, large profit, large risk.


What Are The Requirements?

1. A brain
2. 4 million GP at a minimum, the more the merrier though


Different Strategies

There are several ways to somewhat accurately predict whether or not an item is good for investing. Always remember that you're trying to find an item that's going up in price so you can sell it for profit. Here are some good methods:


1st Method
The first method is the easiest one to use, but it's also dangerous because everyone else will also be using it which could cause severe market fluctuations in either a good way or a bad way. For this guide I'll dub this method 'the upcoming event method'. Basically you look for upcoming events or updates within Runescape and try to find items that will be affected by this update/event. For example if Runescape adds more Frost Dragon locations to the game, more bones will be made and they will be worth less because they're easier to get. If they're made harder to access, the opposite effect will occur. This is the fundamentals on which we base investing. Rare item, high price. Common item, low price.

However from there we can make other, more complex assumptions on market fluctuations. For example if this Frost Dragon update is going to happen a week from now, everyone will be expecting the price of Frost Dragon bones to fall. Everyone will sell their bones before the price plummets down. From here we can go to our second method.


2nd Method

This method is known as high frequency trading. There are more complex forms of it, but this is the simplest explanation I can offer. Everyone is selling their bones, everyone wants to get rid of them. By tomorrow most of the bones will be on the market and no one will be buying them which means that bones will keep piling on, and they'll keep getting cheaper and cheaper. You have to watch this carefully because there's a certain breaking point where they get so cheap everyone will start buying them just because they're great XP and they're so much cheaper than usual. Your job is to predict this breaking point and then stock up on bones the day before it. They'll be cheap. Once everyone's bought some and the market is largely depleted, the price will go up. Crazy GE >_>. From there, sell your bones and run away with the profit. This method is fairly difficult but if you understand the market it won't be too hard.


3rd Method

This method is the easiest to perform. Check out this great site called Runescape, there's a GE section of it found here: RuneScape - Grand Exchange . Look at the price rise section, and find an item that has a good price rise. Click it. You should find a graph showing the items' price progression. If it's steadily going up, it's safe to say that it'll go up a bit more. But don't buy it while it's going up because you'll make hardly any profit from this. Wait until the item goes into a little recession, a small downwards trend amongst a huge upwards trend. At this point several people including you will be buying this item. Since it's going up anyways and since a lot of it just got removed from the market thanks to merchanters like you, the price will start increasing once again. Don't push your luck, sell it early before the rest of the merchanters do. I've made 3gp per dust rune using this method, and I did it with 900,000 dust runes. For those of you who don't understand math that's 'hello, 2.7m profit!'.


Merchanting Clans

...Are gold mines. If you've got a lot of money and have heard of a trusted merchanting clan, use it! What a merchanting clan does is basically it gets a bunch of members to all buy one item. The leaders of the clan are usually pros at this so they'll do all the thinking for you, making this method one of the easiest merchanting methods. Buy the item they tell you to, then sell it when they tell you to. What happens is here is the large amount of people all buying the same item causes a bunch of that item to be removed from the market. This dramatically increases it's rarity and therefore the price steeply inclines. Be careful selling it though because if you miss the selling mark the price could rebound to it's original price before you've sold yours and then you'll be stuck with 8m gloves or something that'll take years to sell.



Final thought:

I dunno, GP? Yeah that's a good final thought. Final thought: GP!

*might add screenshots soon, depends on whether or not I think I need them*

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