The Investment Blog - HolyCannoli

[holycannoli]

haha thanks mate XD

[RSBDavid]

Here is the top traded link he was talking about:

 

http://services.runescape.com/m=itemdb_rs/top100.ws?list=0&scale=0

[holycannoli]

Many thanks mate :)

 

I'll edit the first post with the link.

[holycannoli]

K, someone asked me for this so this should give a basic understanding of merching using the GE. It's important that you read this if you want to try your hand at merching using the ge, because merching has changed a lot since it's implementation. I'll impress you with some numbers showing how much you can make when we come to the chart for cowhides.

 

The idea is to buy items while the price is low and sell them when the price is high. The price fluctuates for all items depending on the demand for those items. If there is high demand, the price goes up. If there is low demand, the price goes down. The way this works is by what items are selling for. If you can't get an item on the GE for market med., then there is a large demand and low supply. If you can buy it for market min., the supply is too high and the demand is too low. The price then drops.

 

In order to make money, you need to buy an item at a lower price than what you can sell it for. This won't work if the price is going down - if you see the price is dropping, you should'nt buy. You should buy when it starts going up. That's key, by the way. Buy when the item starts going up in price. The price of items typically fluctuate in a normal pattern - up, down, up, down, and so on and so forth. So, how do you know when the price is rising and dropping? There's an easy way to do that.

 

 

Watch The Charts

 

 

Click Here and you will find the grand exchange guide. Click on an item and a price chart will appear. Basically, the graph shows the price of an item as it changes each day. The graphs are updated daily with the price changes for that day.

 

 

 

Below you can see an example of one of these price charts. This is the chart for Adamant Armour Set (L).

 

 

 

As you can see, the price chart shows rises and drops in price for the last 30 days. What you want to do it look at the price chart and see the price changes. The fluctuations here are quite small, so this is NOT a good item to invest in.

 

 

 

Below you can see the price chart for cowhides as of today.

 

 

Notice that the price has increased drastically. Would I buy cowhides right now? No. Look at the chart, how much it's risen. Eventually the bubble will burst and the price will drop. BUT, look at the fourth of January on the chart. You can see that the price has started to increase after leveling off. That is the correct time to buy. The price will stay the same for a day or more before rising after a price drop. You can see the price going down (yellow line - ignore the blue one) for the days leading up the January fourth. Then, the price stays the same for a day - see where the line is flat right before jan. 4th? You want to buy as soon as the price starts to rise.

So what do you do?

 

You buy cowhides at that crucial point. Or, buy whatever it is you're investing in. It doesn't matter what it is, really. Buy as many as you feel is safe.

 

 

Do The Math

 

I said I was going to try and impress you with numbers to show how profitable this can be, so here we go.

 

On Jan. 4 cost 200GP Each. Let's say my name is Jim, and I have 10Mil to invest. I decide to buy cowhides on Jan 4.

 

I buy them at the market medium price (200GP Each); I spend all 10Mil on cowhides.

 

It is now the 14th of January, and my investment has turned out to be a good one. Cowhides are soaring (which is true - these charts aren't old, I copied them from the site as I was writing this).

 

Now it comes time to sell my investment. The price is still rising, so i may be able to sell them at the market Max price. However, they don't sell (which means the price could drop soon), so I try market medium price.

 

I manage to sell all of my cowhides at the market price as of Jan 14, which is 231GP Each.

 

That is an increase of 15.5% using the real numbers from recent days.

 

So how much did I make? Well, I invested 10Mil, so I made 15.5% on my investment. That equals about........1.5Mil?!?

 

Indeed.

 

Before you get too excited, though, notice that I invested 10Mil. What if I had only invested 1Mil? I would have made a meager 150k. If you've only got 1Mil, 150k is still significant, but you need to understand that in order to make big money as a merchant, you need to first acquire sufficient funds. Those who have money make money.

 

 

 

I hope this helps you mate, if you've got any questions send me a message in game or make an account and post here and I'll answer as soon as I'm on.

 

 

 

 

 

 

 

EDIT:

 

P.S. I haven't made much progress in the last couple days, still at 1.6M. I made it up to 1.8 but I ended up spending the 200k I got on runes to get my magic lvl up a bit. Right now I'm investing in Big Bones, which I think should increase tomorrow. However, I'm selling tomorrow at max ge price.

[yobob69]

Very useful for beginning merchants. i learned a bit extra too :mrgreen:

[holycannoli]

Thanks mate :)

 

I couldn't remember if I had done one of those or not in this thread. If I had, I don't remember doing it, and I didn't really feel like digging it up and editing it lol

 

 

Time for an update on my investing status.

 

 

Big Bones

 

Big bones are rising. If you bought some yesterday, hold onto them. If you didn't, unfortunately it may be too late. You can try buying at market mid and selling at max before the price changes, but once people realize the price is going down, they'll start dumping their bones and you could lose money.

 

 

My Status

 

I'm at 1.8Mil at the moment. With just over 1.5mil (I spent some more haha) I made just over 250k buying and selling this morning. I did buy big bones, by the way - they proved to be decent for me. I only bought 1.5k of them, but I bought at mid and sold at max this afternoon.

 

I'm buying 2.5k big bones at the moment, they should rise tomorrow judging by the graph.

[258ForLife]

Good to see all of the information for your investments. Update your 1st post. I also have a F2p Merchanting Goal of 2147M :razz:

[holycannoli]

Good to see all of the information for your investments. Update your 1st post. I also have a F2p Merchanting Goal of 2147M :razz:

 

haha you nutter :razz:

 

We'll see where my goal goes, 10mil isn't high but the hard part for me is getting to that point. After that it's smooth rolling \:D/

 

I'll update the first post, it could use some updating lol

[holycannoli]

As predicted, big bones have started to fall. If you couldn't sell unfortunately you lost out - it's probably better to hold onto them until the price goes up again than to sell them now and lose money.

 

Cowhides have also started to slide:

 

 

As soon as cowhides start to rise again, you'll want to buy at market medium. If you can't get them at med, buy at max - if you can't get and med it means that nobody is selling them at that price, and since they're sellign above mid. the price will be higher the next day. You'll make money even if you are forced to buy at max. I would try your hardest to buy at mid, though.

 

I'm still at 1.8mil; waiting until cowhides start to level off, and I'm going to buy them right when they start to rise and hold until the price is high enough for me to make a really decent penny.

[holycannoli]

I've returned because the markets are looking favorable again. :)

 

 

Cowhides

 

Now would be a decent time to buy. Get them at market mid, sell at max the next day. Don't count on a big rise - they didn't fall far enough for that, but then I've been wrong before.

 

 

Big Bones

 

Big bones are rising again as of today, so you can buy them and sell them shortly if you care to. I'm sticking with big bones and cowhides for now.

 

 

 

 

My Status

 

Stopped merching while cowhides and big bones fell, so I'm still at 1.8Mil. Spending it all on cowhides and big bones, will sell them tomorrow.

[yobob69]

I could be wrong, but i think bowstrings are going to rise soon.

EDIT: I was wrong

[holycannoli]

I could be wrong, but i think bowstrings are going to rise soon.

EDIT: I was wrong

 

:P

 

Rather unfortunate =/

 

Also unfortunately I'm not a member any more so I have to do only f2p items :(

[Codguy]

Interesting blog. Although I have to say, I've found flipping to be much easier and much more profitable than investing. Unless you happen to come across an item getting heavily merched by a clan and you take advantage of it. But otherwise, flipping has become quite simple for me.