GoodFight
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~ Ultimate Mercharting Guide ~
Introduction:Hi everyone, I decided to make a runescape merchanting guide for a few reasons. One, I have made loads profit like this, so I thought I'd give something back to the community with this guide. Two, I've made a lawt of money using this method, while only playing the game about 5 minutes a day. Without further ramblings, here we go!
IMPORTANT LINK:
http://itemdb-rs.runescape.com/frontpage.wsIt is important you check the graphs of items you merchant.If you buy an item not knowing that it's in a price divebomb, you may just end up looking like this: as well as and don't forget.
For those of you who don't know where's GRAND EXCHANGE here's map:embar:
For those of you who don't know where's GRAND EXCHANGE here's map:embar:
The Three Types Of Merchanting:
The titel says it all! Yes, there are three types of merchanting on runescape. Unfortunately, all of them require some money. You've probably heard this a hundred times, but "You have to have money to make money". If you're thinking, "How the hell am I supposed to make money in the first place then?" Don't ask me, I don't even KNOW!
1. Fundamental Trading
First of all, when I say "Fundamental trading", I mean trading an item with a horizontal graph. (It's real meaning however, is used in the stock market, meaning you buy stock depending on whether the company is growing or not.)
In runescape, it just means you merchant an item that has two out of two things:
2. is on the "Most Traded Items List" Found Here: http://itemdb-rs.runescape.com/top100.ws?list=0&scale=0
There's also one thing that you always need while merchanting, and things can get pretty confusing without it.
A calculator! You always want to have a calculator around while merchanting so you can determine your profit, loss, and what % you make on the trade.
2. Technical Trading
This is where merchanting gets phun .
Technical Trading: Basically, Technical Trading is buying an item because of graph patterns of that item. If you know about technical trading, you can look at an item graph, and determine whether the item price is going to go up, or down. Sounds bad ###### right? YUP!
If you're thinking "Wut? Rs st00f has patterns?" Yes, in fact, there are solid buy and sell signals in the item graphs.
Ok let's get started:
First off, technical trading is pretty much the opposite of Fundamental trading. Fundamental trading relys on a solid horizontal graph, where you buy for a bit under, and sell for a bit over. Technical trading however, depends on graphs that are wavy and moving around a lot.
What technical trading boils down to, is buying an item at a buy point, waiting for the price to go up on that item, then selling it. It's a lot riskier than fundamental trading, so 9 out of 10 of your trades should be fundamental.
Buy and Sell points
Without further ramblings,
A buy point is when the daily average crosses the 5 day average.
Heres Example:
3. Speculation Trading
In runescape, it just means you merchant an item that has two out of two things:
2. is on the "Most Traded Items List" Found Here: http://itemdb-rs.runescape.com/top100.ws?list=0&scale=0
There's also one thing that you always need while merchanting, and things can get pretty confusing without it.
A calculator! You always want to have a calculator around while merchanting so you can determine your profit, loss, and what % you make on the trade.
2. Technical Trading
This is where merchanting gets phun .
Technical Trading: Basically, Technical Trading is buying an item because of graph patterns of that item. If you know about technical trading, you can look at an item graph, and determine whether the item price is going to go up, or down. Sounds bad ###### right? YUP!
If you're thinking "Wut? Rs st00f has patterns?" Yes, in fact, there are solid buy and sell signals in the item graphs.
Ok let's get started:
First off, technical trading is pretty much the opposite of Fundamental trading. Fundamental trading relys on a solid horizontal graph, where you buy for a bit under, and sell for a bit over. Technical trading however, depends on graphs that are wavy and moving around a lot.
What technical trading boils down to, is buying an item at a buy point, waiting for the price to go up on that item, then selling it. It's a lot riskier than fundamental trading, so 9 out of 10 of your trades should be fundamental.
Buy and Sell points
Without further ramblings,
A buy point is when the daily average crosses the 5 day average.
Heres Example:
3. Speculation Trading
Speculation is the last of the three types of merchanting, and it can make you the most money. It also has the most RISK.
The actual definition of speculation (per dicitonary.com) is:
In runescape however, "speculation trading" (coined by yours truely) it means buying an item due to recent events affecting that affect that item. For instance, lets say Jagex updates runescape making all tree's respawn 5 minutes after you cut them down. Therefore log and bow prices would skyrocket because 1. There is now a huge demand for them, and 2. People recognize this demand, and stock up on them; making an even BIGGER demand! Of course, Jagex would never do anything like that, but you get the idea
I'll give you an example of a speculation trade:
At the beginning of October, Jagex announced that they would release PVP worlds in the month of October. And, as you can imagine, all the items most commonly used in PVP skyrocketed, which include:
As you can see, all three items are used very commonly in PVP, and all of the prices went up around the same time. Coincedence? Please, don't make me roflmfao. Those are speculation trades. Speculation trades are rarer than technical and fundamental. But you can make a lot more money. Keep your eyes peeled, and read the updates carefully, there just might be a speculation trade waiting to happen.
The actual definition of speculation (per dicitonary.com) is:
In runescape however, "speculation trading" (coined by yours truely) it means buying an item due to recent events affecting that affect that item. For instance, lets say Jagex updates runescape making all tree's respawn 5 minutes after you cut them down. Therefore log and bow prices would skyrocket because 1. There is now a huge demand for them, and 2. People recognize this demand, and stock up on them; making an even BIGGER demand! Of course, Jagex would never do anything like that, but you get the idea
I'll give you an example of a speculation trade:
At the beginning of October, Jagex announced that they would release PVP worlds in the month of October. And, as you can imagine, all the items most commonly used in PVP skyrocketed, which include:
As you can see, all three items are used very commonly in PVP, and all of the prices went up around the same time. Coincedence? Please, don't make me roflmfao. Those are speculation trades. Speculation trades are rarer than technical and fundamental. But you can make a lot more money. Keep your eyes peeled, and read the updates carefully, there just might be a speculation trade waiting to happen.
Conclusion
Fundamental trade: Item with a horizontal graph and is on the most traded items list.
Technical trade: Item who's graph is such that the daily average line crosses the 5 day average line.
Speculation trade: Item that is affected by a recent or future update.
Technical trade: Item who's graph is such that the daily average line crosses the 5 day average line.
Speculation trade: Item that is affected by a recent or future update.

