Hi im Ash and in this guide I shall explain what is investing, how to invest and any tips you might need if you plan to invest. I also will be sharing my investments with you and will offer advice if its a good investment or not.
~~Contents~~Introduction-What is investing?
Things to know before Investing
How to start investing
Using the Grand Exchange Database
When is the best time to buy?
When is the best time to sell?
Tips on Investing
F.A.Q
~~Introduction~~Investing is a great source of income as it requires little effort and can produce great rewards. Investing is very simple overall. Basically, it's buying an item or items and then waiting for it to rise and finally selling it for profit. However, Investing is risky and you can lose quite alot with one false move. The real skill is knowing the time to buy the item and when to sell it. As you become more experienced you will start to know when the right time to buy and sell is.
I have been Investing ever since the Grand Exchange came out back in December so I am fairly experienced. I myself have made approximatly 10M from investing but also lost around 2M from a number of ways. However, I do still know quite alot about Investing and hope to share this experience with you.
~~Things to know before Investing~~Before Investing there are a few things you should know. These are:
INVESTING IS VERY RISKY! --- Please take note of this before you jump straight in and lose your money and blame me for it
Never invest more than half or 3/4 of your money --- If you lose it due to a bad investment, it will be hard to make back
Grand Exchange --- You cannot sell an item after you buy it. You must wait 4 hours before it will sell.
Grand Exchange limits --- You can only buy a certain number of an item per hour on the Exchange. These are:
100 for Weapons/Armor
10k for Food
10k for Feathers
10k for Herbs
25k for Ores
25k for Logs
25k for Runes
10k for Potions
10k for Gems
10k for Bones
~~How to start Investing~~Before investing I suggest you have over 1M+ to be able to make a decent amount of money for your troubles. You can start with more or less but the more you invest, the bigger the profit and risk is and vice-versa.
Once you have built up your capita (amount you are investing with) search for an item or items to invest in. When searching for items, think about their supply and demand. Supply and demand are crucial with investing. If you buy lots of an item with little demand and lots of supply then it will be very hard to sell your investment and get your money back. Also, look into your items past history using the Grand Exchange database. This is explained below.
~~The Grand Exchange Database~~The Grand Exchange Database is a great way to look at how much items have risen or dropped recently and their future price changes by looking at the items graph. If the line is going up, the items price will almost certainly go up and vice versa. If the line is starting to level off then the item has probably peaked (about to stop going up anymore) so you shouldn't invest in in this as it will start dropping over the next few days. You can also tell by just looking at how much it has risen rather than the graph. For example, say a whip had risen by 10k for 2 days but today it only rose by 5k, its likely it has peaked and will start to drop. This is exacally the same for items which are falling and have bottomed (won't fall any lower). I will talk about When to buy and sell in the next two sections.
~~When is the best time to buy?~~There are two ways of knowing when is the best time to buy an item. They are:
Looking at the graph --- As I said earlier, when an item has been falling for a while but the last few days it hasn't been falling much at all then this is probably the best time to buy. This is the most common reason of buying an item.
Updates --- Recently, an update to Calquat patches meant that now you could pay a farmer to look after the patch instead of it dieing and you losing a fair bit of money. Because of this update, more people were planting Calquats so therefore their seeds went up as there was much demand.
With experience, you will know what items to buy and when to buy them.
~~When is the best time to sell?~~Like buying, there are two ways to why you should sell your investment. These are:
Peaking --- The item has peaked. The item hasn't risen much at all lately after rising alot. This is the most frequent reason to people selling their investments.
Updates --- If there are updates that effect your item, whether it means that now there is less demand for it or there is more supply, be quick to sell it before it drops.
~~Tips for Investing~~Some tips for Investing are:
Never use all your money on investing. If the investment fails, you will lose alot of money and make it hard to earn back.
Don't have only one big investment, have a couple medium ones to reduce risk.
Use forums to look on items like armour or weapons. If people are buying a certain item like a godsword and nobody selling, be sure to know it's going to go up.
Ask others if its a good investment. Ask me, your friends or any other players you know that have experience in investing.
Do a one time buy test. Offer a price for an item you are looking to invest in for max in exchange and see how long it takes to buy. If it buys immediatly then its not worth investing in. if it doesn't buy for quite a long time then there's high demand and therefore the price should rise.
~~F.A.Q~~Q. How long did it take to make this thread?
A. About 2 hours but was playing ingame also.
Q. What are your current investments?
A. Look in the section my current investments on the third post
Subject: ~Ash's Guide to Investing!~ 
Mon Aug 25, 2008 2:33 pm
