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Investing - When to Buy/Sell

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Investing - When to Buy/Sell Empty Investing - When to Buy/Sell

Post by [ADMIN] Billious 29/12/2013, 9:51 am

Investing - When to Buy/Sell Pre_1399336989__guides

When to Buy/Sell

Choosing the right buying/selling time is really important in investing. You want to buy your stock at lowest point and sell it at highest and at the same time you want to accumulate enough stock to make the most out of your investment. In many cases this isn't possible as it would require constant monitoring of your item. There are still some tricks that will help you choose the proper buy/sell moment.

The first thing you have to understand is that the actual grand exchange price of the item is different than the one shown on the graph. Item may be crashing in grand exchange even though graph shows it's still rising. The reason that graphs don't show the correct prices of the item is because they're made out of past movements of the item. They're made out of yesterdays item's movement. This is really important so before you decide to invest in a item always price check it so you get it's actual price.

Investing - When to Buy/Sell Pre_1421587610__al9nInvesting - When to Buy/Sell 4t4k

Graph: Although the graph shows the item is rising it may already be crashing so it's always important to check ge prices.


Actual Grand Exchange Prices

Buying

Above mid - If the prices are slightly above mid then you can still buy, although I suggest you stay away from anything that's above mid. There are two reasons for this. You didn't catch the lowest point of the item so this will cut your overall profits and the second reason being you won't be able to accumulate enough stock to make the most out of this investment. The best thing you can do is to make this an overnight flip if you think the price will rise but apart from that I would stay away from putting my cash pile into something like this.

Mid price - This is still a good time to buy, although the profit won't be as big as it would be if you would've bought at lowest point, but it will still make a decent investment.

Below mid price - This is the best time to buy. The item's price will be low so if you bought at this price you'll get a huge space to maneuver later on. In any case if you bought at this price and your item is rising you'll make profit whenever you sell during its rise. But be aware if the item's price is way below its mid price. Make sure you check recent updates or market happening as this may be the reason why the item is so far below its mid price. I would stay away from items like this unless you check its background clearly.

Large margins - Large margins usually mean that item has low volume of trade offers in the ge. In this case I would be really careful as in the end the item's price will move either towards its low or high price. Depending on the item's price and constant price checking you can figure out in which direction it's moving. If low price keeps on increasing that means item will rise and if high price keeps decreasing that means item will fall in price. Don't get fooled by large margins and start undercutting a lot as it usually doesn't end up good.

Selling

Above mid - The best time to sell your item is when its still above its mid price. You don't want to sell when item reaches its peak on graph, you want to sell before it reaches the peak as that's when the actual prices in grand exchange are still increasing. If the item is way above mid price I suggest you sell away your stock. This rarely occurs but sometimes demand overrides supply in such a manner that prices may be 10%+ above mid price. Sell right away as later prices will only start to decrease. Before that make sure you check recent updates or market movements so you understand this is only a random occurrence and not the result of something that had an impact on the item. In that case make sure you check the item's background as it may not be the wisest to sell right away.

Mid price - This is still a good time to sell although if the graph is still rapidly rising I would wait some time to check if the mid price may be result of the random occurrence and that the item is still rising. If not then it is suggested to sell right away.

Below mid - In this case you're already too late to catch the highest price. You can't do much here except to sell off your stock. Don't hold on your item hoping it will once again rise in the future. Accept your loss and move on. If you think it will rise once again then buy it later for lower price.

Support/Resistance Levels

You want to buy your stock before item reaches its support level. The item usually has its lowest price during the crashing period. During this time supply overrides the demand making it more possible that somebody in a panic dumps on you. When the item starts to get close to its support level the crash will start decreasing as the item is going to rebound soon. When the item hits the support level you're already too late. It may seem as the lowest point on the graph but it is only because the item's graphs are made out of yesterdays trades, the item will already be rising which will be shown on tomorrow's graph.

You want to sell your stock before the item reaches its resistance level. The item usually has its highest price during the rising period. During this time demand overrides the supply making it more possible somebody buys your stock over its real price. When the item starts to get close to its resistance level, the rise will start decreasing as the item is going to crash soon. When the item hits its resistance level you're already too late. It may seem like the highest point on the graph but because the item's graphs are made out of yesterdays trades the item will already be falling in price, which will be shown on tomorrow's graph.


Decrease of the Fall/Decrease of the Rise

If the falls are decreasing over time then this is the sign item is going to rebound soon even though it may not be hitting its support level. This is the good time to buy as the item is still falling in price so you'll still get it for a decent price plus have time to stock at the cheapest point. Likewise if the rise begins to decrease then this is the sign item is going to turn and crash even though its resistance level hasn't been reached. This is the sign to sell off your stock while its actual price is still above the GE price. If you wait until the graph peaks then you will find the actual price will be below the price on the graph.

Investing - When to Buy/Sell A5ag

Graph: With every update the line will get more horizontal. With every new update the item will crash less. That's usually a sign that item is going to rise soon.

Investing - When to Buy/Sell Lny9

Graph: With every update the line will get more horizontal. With every new update the item will rise less. That's usually the sign that item is going to crash soon.



Special thanks to Julij2 for making this guide with the help of the Investment Mentors Pudd, Connor and the help of Minato.
[ADMIN] Billious
[ADMIN] Billious
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