A guide to Increasing your Margins

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A guide to Increasing your Margins

Post by FlipsallDay on 8/5/2013, 5:39 am

Finding better margins on high volume items.

This guide is about getting the most from lower value items with higher limits,

Prices Change rapidy
Ok we all know that prices of items change. But just how often do they change? How often can they change and how can we use this to our advantage.

Every time a non instant offer in the ge completes the price will change. If lots of people are buying up the sell offers in the Grand Exchange and no new sell offers come, in the price will rise. As the cheapest is sold first, and most expensive sold last

The same principle applies to non instant buy offers. When there are to many sellers completing the buy offers in the ge, the highest offer will get completed first, and each offer completed therafter will offer less, lowering the price until sellers are unwilling to sell so cheap.

So in terms of high volume items, where alot of offers are being completed every minute, the price goes up and down quite fast, and this is were we can make the extra money.

Support and Resistance Levels.
Rapidly changing prices might not sound like the best to flip, I can think of several times when prices have suddenly dropped after i bought and its annoying to say the least! Stable and predictible prices sound much better, and the concept of support and resistance levels make them much easier to predict.

Support level - This is the point in the crash were people will become reluctent to sell, which lowers supply. It's also when the item is at its lowest price, making it good for investment which increases demand and ends the crash.

Resistance level - The peak of a rise, where people will be more reluctant to buy, decreasing demand. Also the items highest price where people would like to sell for a profit, increasing supply and ending the rise.

Although these two levels dont physically exsist in the g.e as rules, if you follow an item like in my example below you will be able to see that it rarely drops below a certain price, or goes above a certain price. By keeping your offers as close to these as possible you maximise profit, yet can still be confident your buy will finish.




Finding the margin.

items that crash and bounce rapidy will hit there Support level often, price checking enough times will show us what it is. We start by price checking the item to find the first high and low price.

My first price check:
[img]

Our first price check is 174-178.
With a 4gp margin alot of people might look past the item and move on.

A few minutes later, I do the secon price check.



With the first price check the most we hope'd to sell for was 178. Now we could have sold for 190gp, its to bad we cant predict these rises.


Third price check. this was quite a good margin in itself but i decided to do two more, still showing an even higher sell price.



Fourth price check: The margin closed up a litte but revealed a new high.



Then the last, which gave me a new low to work with.



All of these and more were done within 30 minutes, 169 was continually the lowest i saw, and 197 the highest. At first our margin was 4gp, using the trend the item followed these prices instead increased our margin to 28gp.


This was The resulting flip, 1.3m profit, not bad for blood runes Smile



I hope you enjoyed my guide,
Thanks for reading and Goodluck!


Last edited by FlipsallDay on 11/5/2013, 2:14 pm; edited 1 time in total

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Re: A guide to Increasing your Margins

Post by celeritas0 on 9/5/2013, 3:18 am

Not a bad idea at all! I definitely like "predictive flipping," and hadn't thought of this method before. +rep Smile

As for making it look better, you have an extra [img] tag right before the first image. Also some colors and/or bold/underline (in moderation of course) could help with the reading and emphasizing headers/important points.
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Re: A guide to Increasing your Margins

Post by cntr on 9/5/2013, 4:17 am

thanks for the share never thought of this Very Happy +rep
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Re: A guide to Increasing your Margins

Post by K ratos on 9/5/2013, 1:10 pm

cntr wrote:thanks for the share never thought of this Very Happy +rep
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Re: A guide to Increasing your Margins

Post by tjanzelve on 9/5/2013, 8:06 pm

Thanks for this tip, trying it out now Smile

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Re: A guide to Increasing your Margins

Post by FlipsallDay on 11/5/2013, 4:27 am

Thanks positive feedback, Im planning to add some more information and presentation to the guide when i find the time =) Glad i could contribute in some way!

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Re: A guide to Increasing your Margins

Post by marcman on 15/5/2013, 1:41 am

Never thought of something like this, awesome idea, I only expanded out my margins from 2-6gp, but can see value if you do this more than twice even.

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Re: A guide to Increasing your Margins

Post by wizardian20 on 15/5/2013, 2:27 am

Correct me if I'm wrong buy Live graphs circumvent this problem, no?
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Re: A guide to Increasing your Margins

Post by celeritas0 on 15/5/2013, 3:45 pm

Not for items they don't cover Razz
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Re: A guide to Increasing your Margins

Post by merkeysa on 15/5/2013, 8:01 pm

Grate info on finding better margins!!!

i have been very disapointed with very low margins and my cash pile has not been rising as fast as it was.

thank you very much i would +rep but i cant at the mo.

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Re: A guide to Increasing your Margins

Post by wizardian20 on 16/5/2013, 1:14 am

True. I'm curious to see how margins fluctuate trade-by-trade, seeing if there's any systematic way to hit the offers as the head upwards and downwards, even within a second- obviously near impossible for items at this wealth level, but perhaps for more expensive items. Maybe, within an item, such as the broad-tipped bolt, one could hit all the purchases during its normality 'phase' but find a way to hit all of its major peaks. I'm almost positive these are just highball offers left in that were hit when no others were selling as the live graphs mark them as the low, however there is some possibility that there's more to it.
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Re: A guide to Increasing your Margins

Post by Sosolid on 16/5/2013, 11:36 pm

This guide basically taught me how to flip. Now flipped over 100m so far and still going, thanks dude.

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Re: A guide to Increasing your Margins

Post by aby3sal rag3 on 26/5/2013, 6:01 am

I'll try it out thanks man. This will help me improve a lot. Very Happy
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Re: A guide to Increasing your Margins

Post by ADDU on 21/7/2013, 9:35 am

Though this requires a lot of patience its a great method.
WIll definitely use
doing this atm.

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Re: A guide to Increasing your Margins

Post by Bunny1337 on 25/7/2013, 5:26 pm

Very nice and detalied guide. +rep!
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Re: A guide to Increasing your Margins

Post by attk master on 5/8/2013, 4:53 am

Definitely going to try this, thanks for such a helpful guide, +rep. Smile
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Re: A guide to Increasing your Margins

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