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 Merchanting FOR DUMMIES

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Ollie
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PostSubject: Merchanting FOR DUMMIES   Fri Nov 19, 2010 2:31 pm

| Merchanting Guide Part 1 | (Overview)

Merchanting is one of the very few things in RuneScape that involves actual skill. Anyone with enough time can chop choking ivies until 99 Woodcutting, but only those who know how can make a fortune from merchanting. The purpose of this guide is to teach you how to merchant effectively and reach your RS wealth goals.

There are five main types of merchanting, I know them as; Fundamental, Technical, Update, Manipulation and Junk Trading. Fundamental merchanting involves buying a very stable item for below market price, and selling above market price. Technical merchanting is used for items whose price has a "wave effect", where you buy in the trough, and sell at the lip. Update merchanting is where you buy lots of an item that is new, or a recent update has caused an increase in demand for. Manipulation (as you most probably know) is where an excessively large group of people get together and "buyout" an item, causing the price to skyrocket. Last but not least, Junk Trading involves using World 2 to convert easily obtained junk items into cash through items with extravagant street prices.


Merchanting Guide Part 2 | (Fundamental)

Fundamental (AKA Flipping), as the name suggests, is the most basic form of merchanting. The aim of Fundamental trading is simply to buy something below average, then sell it for more than average. Ideal Fundamental trade items are items that rarely move in price. This prevents you from buying an item, only to have it crash after you buy it and cause a loss.

The easiest way to find items such as this is to look at the 90/180 days pages in the Top 100 Most Traded Items list. Then, check the graph, if the price moves in a wave motion, then it is much more suited to Technical Merchanting (covered in part 3). If the price is relatively flat and stable, then you've found yourself a good item. In general, the best prices to buy and sell Fundamental items are two to three percent below for buying, and two to three percent above for selling, giving you a four to six percent profit margin. I would suggest spending about two to six weeks doing Fundamentals to introduce yourself to the world of Merchanting before moving on to any Techy trades. Once you have mastered picking good Fundy items and choosing good prices, you are ready for the next step.


| Merchanting Guide Part 3 | (Technical)

Technical trading is much more difficult than regular Fundy trading, and can involve many hours of looking at graph after graph on the GE if you are inexperienced. The general rule with merchanting is HIGHER RISK EQUALS HIGHER PROFIT. Because there is a higher risk with Techy Merchanting than Fundy Merchanting you'll get, on average, a higher return.

When looking for a technical trade item, you want to see that the price is constantly moving and forms a very rough wave pattern. The waves will have peaks above the 30 Day Average, and troughs below the 30 Day Average. When the graph begins to look like a quarter-pipe (dropping but beginning to level out), then you know it is time to buy. when the graph is approaching the peak of wave, but not quite there, you know it is time to sell. Because the item is still dropping when you buy it, you can get it fairly quickly even if you are buying for near Minimum price. Same goes for selling, because the item is still rising, you can sell it for near Maximum.

Another form of Technical Merchanting involves Manipulation clans (if you are unfamiliar with what Manipulation Clans are, then read Part 5 of the Guide). When they dump their item, the price drops drastically and often below the price before they started buying that item out. When the item is first beginning to level out, you can buy mass quantities of that item for minimum, sometimes instantly. Then, by waiting one or two days, you can sell very quickly near Maximum price. Techy trades are good,right up until Max Cash (2.417 Bn), when you really no longer need money.


| Merchanting Guide Part 4 | (Update)

Update Merchanting is just as the name suggests. It is an item affected by a very recent update. Update Merches are possibly the best profit-maker in all of RuneScape. What happens is an Update comes out, or you hear about it coming very soon. You then need to think what items this update will affect. If this Update will cause a drastic increase in demand for a certain item, buy as many of that item as possible. The item's price will explode due to the increase in demand, and will often be chosen by Manipulation clans very soon after the update, causing even more of a rise. Anyway, your holding on to lots of this item, and watching it rise 6% per day. You can now either;
A: Sell all of them on Maximum Price.
B: Trade them in World Two for items with higher street prices than GE Prices (covered in Junk Trading Section).
C: Sell them with junk for cash (same as B).

A recent example of this was when it was made possible to colour the Abyssal Whip. A huge amount of people wanted to get a whip in their favourite colour, and a private Manipulation clan decided to buy them out. As a result, they were impossible to buy after the first day, instantly sold on Maximum and could be traded for Coins and a Mint Cake (had old street price of approximately 6M) Or could be sold with junk for 5-7M Coins. So keep an eye out on the main page, recent polls and future updates heading on the Forums.


| Merchanting Guide Part 5 | (Manipulation)

Manipulation (pyramid schemes), the most profitable form of merchanting in all of RuneScape. Manipulation is where a group of players pool their money and invest it all in one item. The sudden increase in demand causes a drastic rise is the item's price. Other merchanters like you and me see the rise and add our offers to theirs which causes the price to rise even higher. Then with no warning, the group of players will "dump" their item, causing the price to crash and everyone who doesn't know immediately to lose a lot of money.

Another method of Manipulation is called Junking. This does not involve a clan, but rather doing it by yourself on an item with very little trade and stock. This means that you can easily buy out the stock, and get the item to rise. However, because the item has so little trade, it is near impossible to sell the item on the GE, therefore you will need to use Junk Trading to get rid of it, once you have finished making it rise.


| Merchanting Guide Part 6 | (Junk Trading)

Many players have thought that since the release of the Grand Exchange, World 2 and Forum trading was close to dead. This is not the case. Many players still use World 2 and the forums as a more advanced method of trading than the Grand Exchange. This is because some items hold a much higher "street price" than their actual GE price. A recent example was the famous Mint Cake. Mint Cakes had a GE price of approximately 30K, but a street price in World 2 of a whopping 5-8M! This meant that people could pay for something that is normally hard to buy in the GE with cash and a Mint Cake and get it very quickly. Unfortunately, Mint Cakes were being used for RWT, because they were a way around the trade limit. However, there are still a number of items with higher street prices than regular prices, such as Hooks, bought out items and all Discontinued Items. What does all of this have to do with Junk Trading? I will give you an example. You find out that the Green H'ween Masks you got are being bought out (impossible to buy) and your Maple Seeds are being dumped (impossible to sell), you have 2 Green H'ween Masks in your bank and 50K Maple Seeds in your bank. If you attempted to sell your Maple Seeds on the GE, it would take you months, because of all of the other people trying to sell them. But if you take them to World 2 and offer to give people 2 Green H'ween Masks if they buy your Maple Seeds, then it could only take a few hours or even less to get rid of all of your crashing Maple Seeds. Now, you need to know how to use this to make you money. Lets say you just have the 2 Green H'weens in your bank and they are still bought out. You could go to the GE and instantly buy 1K Maple seeds for Minimum price. If you go to World 2, you can trade your Green H'weens and Maple Seeds for Market price, meaning you make 5% on the amount you invested in Maple Seeds (standard difference between Minimum/Maximum and Market price).

So, if you happen to find that you have an item that is currently being bought, go to World 2 and have a go at Junk Trading.

Items that commonly have street prices:
- All Partyhats
- All H'ween Masks
- Santa Hats
- Discontinued Edibles
- Royal Crowns
- Christmas Crackers
- Higher priced Spirit Shields
- Some Clue Scroll rewards
- Uncut Onyx


| Merchanting Guide Part 7 | (choosing an item and prices)

Choosing the perfect item is crucial to any form of merchanting. It could be the difference between making the standard 4%, and making 1% or even losing money. So, now I will explain to you where and how to find good items for all kinds of merchanting.

| Fundamental |
Finding items for Fundy merches is very simple. You want something where the price will not move too much, and have a large amount traded each day. So to find the perfect items, you just need to visit the Most Traded page in the Grand Exchange page under Game Guide. A lot of the items in the top 20 or so are very good for Fundamentals. If the item is slowly dropping, buy for Minimum sell Market. If rising, buy Market sell Maximum.

| Technical |
For finding technical items, you want to look at the Largest Drops page under the Grand Exchange. This is because you will be able to get the item for Minimum quite quickly, and if timed right, will be able to sell for Maximum in a matter of days.

| Update |
Obviously, to find items for Update merchanting, you need to regularly check the Runescape home page and view any recent updates, then think to see if it will affect the price of any items. You can also check the latest Poll to hear about up-coming new items. Usually you just have to pay Maximmum.

| Manipulation |
When manipulating, you want an item that is very unstable. Also, you want to choose something with a relatively low amount traded each day. Often, the best items for manipulation are miscellaneous items. There is no place where you can find a group of 'Great to manipulate' items, but most items that are random such as coloured gloves and Mint Cakes (I'm almost certain that that was manipulation of the highest level) are great for manipulating. You always have to pay Maximum.


| Merchanting Guide Part 8 | (predicting market movement)

Being able to predict how the price of an item will move is a very useful asset to any merchant. If a player can see an item will rise before it does, they can invest in it and make a fortune. There are four main methods of predicting an item rise (excluding Update Merchanting), these are:
Manipulation Clans (wouldn’t recommend this)
World 1/2
Forums
And The Grand Exchange

I would recommend using all of these (except manipulation) to try and work out if an item will rise.

~Using World 1/2~
To use World 1/2, simply go to the Grand Exchange in World 1/2, and see what people are buying for Maximum Price or “Max in Trade”, usually, this means that the item is about to rise a significant amount, and could work as a possible Techy.

~Using the Forums~
To use the Forums to search for rising items, you’ll need to search threads in the Market section. For the search term, use something along the lines of “Max”, “Max in Trade” or “Max in GE*. If a number of recently posted threads come up where someone is buying an item for Max and you saw the same in World 2, the item is probably good for Merchanting.

~Using the Grand Exchange~
There are two ways of using the Grand Exchange; using the Grand Exchange page and using it in-game. To use it in-game, attempt to buy one of the item you are considering Merchanting for Maximum. If it buys for Min, it will drop a lot. If it buys between Min and Med, it will drop a little bit. If it buys for Med, it will hardly move next update. If it buys between Med and Max, it will rise a bit next update. If it buys for Max, it will rise a moderate amount next update. If it doesn’t buy at all, it will probably rise a lot next update.

To use the Grand Exchange page, look at the graph for the item. Compare the Daily Line to the 30 Day Average Line. If the Daily is below the 30 Day Average, then it will most likely rise. If it is above the 30 Day Average, then it will most likely drop.


| Merchanting Guide Part 9 | (choosing a price)

A lot of people find Merchanting very slow when they are new to it. Either their item is taking ages to buy, or taking ages to sell. This is because they have chosen the wrong price. Merchanters never buy/sell for Minimum, Market, or Maximum, They set a custom price.

This is how the Grand Exchange works:
A player comes and attempts to sell an item for Maximum price. The GE checks all other current offers, and attempts to find an uncompleted one to match with that player’s offer. Usually, no one will be buying the item for Maximum price, so the offer will not be completed. If another player comes along, and chooses to sell the same item for 1 coin below Maximum price, theirs will always sell first. When you place an offer on the GE, it will try and find the best deal for you (why you sometimes get coins back). So, if you are selling an item for just 1 coin below everyone else, then the GE will complete your offer first.
However, you cannot just change the price by 1 coin and be done, others do that too. There are people that know others do this, and therefore will change their price by 2-5 coins. Others again know this, so they go up to the nearest 10/100/1000/10000 (depending on the price of the item, approximately 1% of actual item price). People like me know this so we go a couple of coins over that.

If it seems confusing, don’t worry. It will seem a lot simpler after you start doing it.

Thanks for reading my Merchanting Guide. Please comment, and ask any questions you may have.
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Hooded
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PostSubject: Re: Merchanting FOR DUMMIES   Fri Nov 19, 2010 11:23 pm

A well written guide Smile


Last edited by HoodedAttack on Tue Nov 23, 2010 2:14 am; edited 2 times in total
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PostSubject: Re: Merchanting FOR DUMMIES   Sat Nov 20, 2010 4:52 am

Sweet, thanks Ollie Smile
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Hooded
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PostSubject: Re: Merchanting FOR DUMMIES   Tue Nov 23, 2010 3:12 am

I agree Gamer, thankyou for your support Smile

~ Hood ~
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Miss Shelly



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PostSubject: Re: Merchanting FOR DUMMIES   Mon Dec 06, 2010 3:30 am

Great post Ollie, thanks for taking your time to write this Very Happy
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Ollie
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PostSubject: Re: Merchanting FOR DUMMIES   Mon Dec 06, 2010 3:45 am

Wasn't too hard Smile

Just copied my guide off of the RS forums Razz
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mightyguy198



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PostSubject: Re: Merchanting FOR DUMMIES   Thu Dec 09, 2010 8:48 am

:O CHEAT!

Everyone cheats these days tho Razz
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Hooded
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PostSubject: Re: Merchanting FOR DUMMIES   Thu Dec 09, 2010 6:44 pm

It was his guide, not another person's Razz hehe

~ Hood ~
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mightyguy198



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PostSubject: Re: Merchanting FOR DUMMIES   Mon Dec 13, 2010 12:54 am

Shhh Hood.

ok maybe not cheating, but being Lay Razz
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