The Golden Rules For
Merchanting On The
Runescape Grand Exchange
How To Make Money
On Runescape
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Merchanting Is A Game
If you think of Merchanting as a mini-game within Runescape, then it’s better to know the rules before you start, don’t you agree?
You want to know the rules so you can plan a strategy to give yourself the best odds of winning the game, isn’t that right?
Merchanting really is just a game – and if you play it right, you really can make a steady stream of extra gold pieces!
That’s right – extra cash money that you wouldn’t have had, if you hadn’t been merchanting!
Important Danger In Merchanting
However, there is something that profitable traders already know – that you may not know.
Most people know about this danger, but very few people realize the critical importance of this fact, and fewer still do something about it.
If you are going to be successful in merchanting, you must give this matter careful consideration.
The following video presentation will highlight this dangerous fact:
Avoid The Dangers – And JUST GET RICH!!
Once you learn to add these ideas into your own merchanting, you will personally benefit by enjoying an exciting new way to make additional money in Runescape while you are doing other things!
You will feel the great satisfaction of watching your gold pieces grow – the ease and well-being that comes from knowing you can buy anything you need.
{ 6 comments… read them below or add one }
I daytrade flip with these rules:
1) ALWAYS buy low.
NEVER try to flip items that have a spread of less than 10%.
2) ALWAYS sell high.
3) NEVER overextend.
4) If an item does not buy or sell overnight, choose the next item on the rotating list.
5) ALWAYS change items after EVERY purchase or sale, at lease once per day.
6) If an item goes down after purchase, buy more the next time that item is rotated through the list. NEVER BUY MORE AT THE SAME TIME.
7) If an item goes up after purchase, sell PART of it. If it goes up more, sell some more in the NEXT rotation. Ditto til price tops out or til none left to sell. NEVER SELL MORE AT THE SAME TIME.
The list of items I merch is different on every account with some overlap. I rotate through each individual list. Lists vary in length from 2 items [soon to be 3 once I find a new item] to 20 items.
These rules produce an estimated average 20% profit per flip, double what simple flipping can do.
Things to consider:
1) If one always buys low and sells high, the profit spread is 45/55, meaning 45% possible loss, 55% possible profit. Over time this is a GUARANTEED 10% per flip. That adds up fast. The main limiting factor is the 4-hour limit.
2) In normal markets, if one buys at low and sells at high within 2 days, it is IMPOSSIBLE to lose money. This is because Jagex uses a 5% maximum movement formula and it takes at least 2 days for the current high to become a high below the current low.
3) In fast moving markets, you can lose money simply because you can’t sell your item within the 2-day time frame. In cases like that you have 3 options, a) sell at high as soon as you can and immediately buy it back at the low and then do one of following, b) buy more by scaling down [my choice], or c) hold and wait.
For the record, I merch on 18 accounts using the above and I have NEVER used merching SCAMS [clans]. Some accounts are still at their minimum total levels (34 or 37) just as they were when created. Only ONE account has a combat level over 5. All have many millions, tens of millions, and even one pushing 200 million gp. None have ever been a member so none have ever been able to merch member items and none have ever been able to use 6 slots. Oldest is just over 3 years old [pushing 200m gp] and newest is 2 months old [pushing 10m gp]. Not great numbers considering the time frames, but still reasonably high for a free player.
Very good video I found it very useful, but I am still fairly new to merchanting and don’t understand alot of the meanings, for example what is item flipping? And in the merchanting I have done I don’t make that much money, like how do I know when to buy and when to sell? I went through a small phase of buying bronze bars on mid and selling on max, it was working fine but it wasent generating much income. Thanks for reading.
Great question Max!
In order to find a winner, first you need to identify the time frame of your plans. Day traders, or flippers, look for different conditions than long term trend traders.
Long term traders look for items at 180 day lowest prices – review the needs of the item in the game and then watch the price chart for the best time to buy.
Swing Traders look for tight range break-outs or choppy markets that move 10% of their value every couple weeks.
Day traders like markets that are trading within a steady range.
Each style of merchanting can be profitable if you are smaller when you are wrong and get bigger when you are right.
I really like your question because the new Merchanter’s Mastermind course includes videos that show exact chart patterns to watch for when trading on the Runescape Grand Exchange. I’m looking forward to sharing the examples and predictions!
Thanks for the question Preston!
The specifics of when to buy depend on your trading system, and how much you buy depends on your cash flow – and if you are trend trading or flipping, but to trade most safely, in all cases, you assume you are wrong from the moment you put the trade on, and you preparing to get out unless the market proves you right.
The G.E. has a four hour limit as the absolute minimum – unless you sell to someone personally, outside of the G.E.
Like taking off in an airplane, the very start of a merch is not the time for fancy tricks. Especially in trend trading – start carefully, then add more when you have some altitude.
With deciding yourself when you are wrong, do you mean that you just have to get rid of an item you though would rise over the next few days and instead starts dropping the next day?
I also have problems targeting items that will rise, what I’m doing now is that I look is that I take a daily look at the top 100 price changes and just watch the lower area with a 1-2% increase in price. But most of the times these items are already a few days, sometimes even a week, past their lowest point and I can’t decide whether I should jump in and buy those items or that they’ll just crash the next day instead of continuing to rise.
Thanks, Max
great video link! I just have one question at the time being and that is when should i decide if im wrong? like after one day or does it differ with certain items. thanks, Larx