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Billionaire�s Investment Guide

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Clan Chat: Cellerdoor

 

Clan Chat: Cellerdoor

 

Clan Chat: Cellerdoor

 

 

 

Welcome to the Billionaires Investment Guide. The purpose of this guide is to teach you all the fundamentals of investing as well as giving you the opportunity to try it out first hand. As for my credentials, I am Fenghahe, the 36th rune crafter in the game having massed 1.2 billion from it, and an additional 600m from investing. This guide will teach you to do the same, and more!

 

 

 

I can guarantee that you will make money from this guide, and even at 2% of your wealth everyday! So if you have 100m, youll make 2m a day, everyday, at least!

 

 

 

Clan Chat Application

 

Name:

 

Investing History?

 

How much money have you made from it?

 

Do you agree with the purpose of this guide?

 

 

 

Rankings

 

 

 

I cannot do this on my own and I need your help! Ranking will be done on a merit system. Simply bumping the guide wont be enough for a general (although it does help). Ranked members should be friendly, helpful with a strong investing knowledge.

 

 

 

 

 

Table of Contents

 

1)Forward, Registration, Ranking

 

2)Before Investing

 

3)Investing Basics

 

4)Techniques to Improve your Investing. (Must Read)

 

5)Techniques to Improve your Investing (continued)

 

6)Techniques to Improve your Investing (continued)

 

 

 

Before Investing

 

 

 

There are a few things we need to be constantly aware of when investing, they are:

 

 

 

1. Trade Limit on the Ge

 

100 for Weapons/Armor

 

10k for Food

 

10k for Feathers

 

25k for Herbs

 

25k for Ores

 

25k for Logs

 

25k for Runes

 

10k for Potions

 

2. You can not sell immediately after you buy, and vice versa. The delay is 4 hours.

 

 

 

 

 

 

 

Investment

 

 

 

We all heard (or saw rather) Brugsen Bursens advice to all investors, Buy low, Sell High. Frankly, that is the essence of investing, but how exactly and when exactly do we buy and when do we sell? I will answer this question in three ways.

 

 

 

Short Term Investment

 

Short Term investments usually span across 1 to 3 GE updates. It is crucial to predict ahead of time (see investment techniques for more information). Successful prediction of investments is crucial in going into a short-term investment.

 

 

Long Term Investment

 

This is for those items that are severely undervalued. I remember a while back when flax was 70 ea and pure ess 80 ea. Buy them, as much as you can! They are guaranteed to increase!

 

 

 

Zero Term Investment (Merchanting)

 

This is a nice little investing method. You do all the buying and selling within one update. Usually aim for 2-3% difference and use it on items with high volume. Amours and weapons also work from my experience.

 

 

 

if the Item is going down, buy at 2-3% below the med, and sell at just below the med (use the general buying/selling method in techniques section).

 

 

 

If the item is going up, buy at just above med, and sell at 2-3% above med.

 

 

 

If item is stable, buy at 1% below med and sell at 1% above med

 

 

 

Since between each buying and selling there is a 4 hour delay, one complete cycle is 8 hours. So you can do this 3 times a day, which means 6-9% profit a day!

 

 

 

 

 

Techniques to Improve your Investment

 

 

 

These techniques will reduce risk and improve profit for all three types of investing.

 

 

1. Forum Method

 

 

 

This is a great asset for us in determining when an item will peak. Either you trading or buying/selling through the GE, you must do it within the set range made by Jagex. With the forum it is different. With the invention of junks (items that have numerical value but not real value, ex, some scrolls, they are useless yet they have value assigned to them), you can trade/sell at whatever price you want with the additon of junks. This way, the price on the forums can be much higher/lower than what GE allows. Naturally, the GE will shift toward the forum prices to reflect more accurate pricing.

 

 

 

Ex. Dragonfire Shield is selling at 20-21m on the GE. Yet people are buying Dfs at 24m, expect them to go up.

 

 

 

2. GE Database

 

This is our Weapon #2 in prediction peaks. Items that have a wave graph are generally good items to invest in (merchanting or shot term especially). When approaching the peaks, the slope (steepness) of the graph decreases.

 

 

3. Pricing Disparity

 

 

This is our Weapon #3 in predicting peaks. This is a bit more complicated, so follow me closely. Items usually have some related items. (Potions are related to their Herb and 2nds, Cut Gems are related to Uncut) So if one of these items goes up, expect the similar item to go up also. Similarly if the related items crashed, expect the regular item to crash shortly.

 

 

 

4. Rigging

 

This is literally a Weapon of Mass Destruction. (This is also manipulating to some extent so if you are not comfortable with it morally, skip to 5. If you are curious, read on.) Rigging nearly always means monopoly. Either you do it yourself or do it with friends, it can mean tremendous profit for you. By buying up the supply of an item, you are squeezing the supply shut. Law of Supply vs. Demand tells us that this item will then skyrocket. When it does, sell (what more can I say). However to rig an item, you need about 600m to 20 billion, depending on the item. bummers, huh?

 

 

 

5. General Buying/Selling

 

 

 

Humans have a natural tendency to like even numbers, 5, 10, 15, 10mil (you get the idea). So why not be different, if you have your set your buying offer for nature rune lets say for 276 instead of 275, you will beat all of your competitors for only 1 gp higher, not bad huh?

 

 

 

 

6. 1x Test

 

 

 

This method allow us to predict tomorrows prices of an item, neat huh? We can get a very good idea of what the price will be by looking at its transaction price. Buy 1 item at max, and see how much money you get back. Try again a bit lower. See what price you paid. Or do it the other way around, sell 1 item at min and see how much more you received. Chances are, that is the price where transaction occurs. Unfortunately we cant do this with item that are a little more expensive (aramdyl godsword for example, unless of course you are that much loaded, but then you dont really need this guide then do you?)

 

 

 

7. Calculating Tomorrows Prices

 

 

 

Here is the general formula for calculation tomorrows medium price.

 

 

 

A = amount sold

 

P = transaction price

 

 

 

(A x P) + (A x P) + (Ax P) .

 

---------------------------------------

 

A + A + A + A

 

 

 

Example

 

 

 

10k nature rune are sold at 300 ea

 

20k nature rune are sold 270 ea

 

60k nature rune are sold at 278 ea

 

 

 

the price tomorrow will be

 

 

 

(10k x 300) + (20k x 270) + ( 60k x 278)

 

-------------------------------------------------

 

10k + 20k + 60k

 

 

 

= 279 ea.

 

 

 

Works best at extreme cases, I get about 99% accuracy with this formula.

 

 

 

Additional Tips

 

 

 

1. Always diversify your investments. Not only does it reduce your risks, you can also familiarize yourself in different markets.

 

 

 

Thanks, join the clan chat if you have questions, suggestions or concerns.

 

 

 

Clan Chat: Engineer Mba

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You, my soon to be best friend ;), are a genius! If this actually works, which I'm sure it will, many many people will be very very happy. Although, as soon as people read through the entire thing and start to understand even the basics, many common items will done for profitably.

 

 

 

I will be coming back to use this many times throughout my travels, as you made things a whole lot easier to comprehend economically.

 

 

 

=D>


Quality posting at its finest.

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Hey dangit you beat me to it :lol: i actually recently purchased a book on stocks and investments for real life and was going to type up a guide for the runescape economy.

 

 

 

Nice guide, very detailed

 

 

 

THIS WORKS! I PROMISE AND HE PROVES IT :thumbsup:


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Looks like a nice guide, but with only about 5m cash left to invest it will not be of any use to me, yet.

 

 

 

I do however have to read it over one or two more times as some things are still unclear but I'm sure I will get the point anytime soon :P


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very nice. I didnt know about the 4 hour delay at all....:(

 

 

 

Name: anim7

 

Investing History? Rares/TT merchant look at avatar.

 

How much money have you made from it? I just looked at this guide, so I have not made much yet. However I do have a history of speculating before GE. Hope that counts.

 

Do you agree with the purpose of this guide? Yes of course


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85 Mining achieved on Dec 4, 2007

85 Smithing achieved on May 28, 2009

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Very Nice guide.

 

 

 

However I do not get the way to predict the next day's middle.

 

 

 

Can you clarify?

 

 

 

Are the (') suppose to be the different prices?

 

 

 

And what is the formula for using the buying way.


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Dungeoneering isn't a skill.

I'm faster than bots at Sorceress Garden.

PM me if you want to chat. My PM is always off.

My keyboard is on fire. Want some?

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Hello, thank you all so much for your support, I never expected so many positive reviews.

 

 

 

A little more clarification on the formula. The formula is based on the transaction price and the number transacted.

 

 

 

The ' denotes different terms, so yes you are correct.

 

 

 

Buying and selling are all transaction, so there is only this one formula. There isn't a separate for buying and one for selling.

 

 

 

Notice though, that this formula would require that we know the amount transacted and the value it occurred at. Both 2 unknown variables. We can gain insight into them however by using the 1x method. The best scenarios would be at extrema values (the peaks). The amount transacted would factor out in both the numerator and denominator and left only with the value it transacted at, and as it is near extrema, the value is approaching the extrema, but not quite meeting it.

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Clan Chat Application

 

Name: Taloopis

 

Investing History? I used to merch in fally gardens and i eventually investing an the frem rings which i discovered were one of the best things back then.

 

How much money have you made from it? No clue tbh...

 

Do you agree with the purpose of this guide? Yes i do and i would also like to use it to my advantage.

 

 

 

________________________________

 

 

 

Great guide btw.

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Hello, thank you all so much for your support, I never expected so many positive reviews.

 

 

 

A little more clarification on the formula. The formula is based on the transaction price and the number transacted.

 

 

 

The ' denotes different terms, so yes you are correct.

 

 

 

Buying and selling are all transaction, so there is only this one formula. There isn't a separate for buying and one for selling.

 

 

 

Notice though, that this formula would require that we know the amount transacted and the value it occurred at. Both 2 unknown variables. We can gain insight into them however by using the 1x method. The best scenarios would be at extrema values (the peaks). The amount transacted would factor out in both the numerator and denominator and left only with the value it transacted at, and as it is near extrema, the value is approaching the extrema, but not quite meeting it.

 

 

 

 

 

Yeah i was wondering about that since they dont tell us the amount traded per day for the mid lowest and highest prices

 

 

 

But i did the 1 item thing on nats and it showed that they should stay the same tomarrow

 

 

 

and btw do you have an mba since it's in ur username and you seem to know a lot about economics?

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My username is actually Fenghahe. But we are using Engineer Mba's chat. He is a genius, a Harvard graduate with a Mba yes.

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Very well written.

 

The only thing wrong with this guide is you use the term 'investing', which is incorrect.

 

The proper term is speculating.

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Very nice, will be using this once I get some more cash. I have 2 mil banked so might try out it sometime just to make a little. Added to favorites \'

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Name: ckellingc

 

Investing History? skiller and investor by trade

 

How much money have you made from it? between 20m-40m

 

Do you agree with the purpose of this guide? I think its great sharing ideas and formulas


There is no way to make "Millions fast and easy"...

 

SO QUIT ASKING ABOUT IT!

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Name: dynastyfan0

 

Investing History? I merced iron ores to turn my first million into 10 million long ago.

 

How much money have you made from it? 9m

 

Do you agree with the purpose of this guide? Of course.

 

 

 

Im currently runecrafting to 99 (91 atm) and im making hundreds of millions. Im very interested in putting this money to good use while I train away, because my goals are large and I like thinking big.

 

 

 

I can tell you are very intellegent btw, very well written.


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2181st to 99 Runecrafting on 7/28/2009

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Good guide :thumbsup: but your post count is only 4 - and they are all in this thread.

 

 

 

Please make more posts and share more knowledge with us!

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Thanks for the great guide ::'

 

 

 

After reading it and a bit of research i decided to invest in 53k Chinchompas and 111 D meds 8-)

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This is the sort of guide that I have been dreading. I have made about 120 mill from GE since it started as a f2p which has freed me to do tasks that would normally be too slow as I did not want to lose money ie cook my own fish or smelt my own ores.

 

I do not follow all these techniques but a couple of the major ones. I also use a couple not mentioned. The only disagreement I have is with the +1 method. What I have noticed is that prices for buying and selling are very often best put at round figures ie 5,10,15 etc. This is not for economic reasons but because we are human and mainly like order in our lives. This sort of thinking is as important to understand as any economic analysis.

 

Now please kill this thread!!!!

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This is the sort of guide that I have been dreading. I have made about 120 mill from GE since it started as a f2p which has freed me to do tasks that would normally be too slow as I did not want to lose money ie cook my own fish or smelt my own ores.

 

I do not follow all these techniques but a couple of the major ones. I also use a couple not mentioned. The only disagreement I have is with the +1 method. What I have noticed is that prices for buying and selling are very often best put at round figures ie 5,10,15 etc. This is not for economic reasons but because we are human and mainly like order in our lives. This sort of thinking is as important to understand as any economic analysis.

 

Now please kill this thread!!!!

 

 

 

If you are dreading this thread because it let others know and understand the investing methods, then I think it would be very selfish. There are millions of books on becoming millionaires, but the majority of people still live in poverty. There are millions of guides on how to improve your SAT or ACT score, yet some still score very low. There are millions of books on science, math, languages, yet not everyone is literate. The important thing is to have the information available, and then let readers the themselves decide what to do with it, not restriction of information in the first place.

 

 

 

Now the 1x test. I agree that it is more natural to use multiples of 5 and 10s. But to be successful in investing is to be different from everyone else, to see what others can't. And because of that very reason, use numbers others than multiples of 5.

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i was just wondering what do u mean my ge update by this do you mean everytime the prices are updated?


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What method are you using to gather the data used in the projection formula? Are you selling the nature runes in the example yourself?


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