Before we start profiting out of the Grand Exchange, we have to analyze Supply and Demand trends in order to identify the best items for Flipping and Investing. There are a few ways to do that. First of all, experienced Players will probably list these items from their memory easily, as they are using them extensively. If you do not have knowledge about the most profitable items, you can for example:
- Use widely available online GE tools, like the official Jagex Grand Exchange Market Watch website (for RS3) or the GE Tracker (for OSRS). These sites offer a lot of Grand Exchange statistics, like Price Graphs, and trade activity for any in-game items. The "Price Rises" and "Most Traded" tabs will be most useful to you. You have to learn how to "read" the graphs; this is best shown on an example (this information will be very useful if you want to start long term Investments and can come in handy during Flipping as well):
Graph 1. The price change of an item in the span of one Month
Graph 1. shows us how the graph of the potentially profitable item looks like. We can see a stable rise in the Item's price with just a few little drops. Now that we found a promising graph, we have to analyze it:
Graph 2. The monthly price Graph on which the important Trend changes were marked.
Green rectangles show us the best time to buy the analyzed Item (periods when stable price begins to rise again). Red rectangles show us when to sell the analyzed item (periods when price begins to fall). After the initial analysis, we should take a look at the long-term (3 and 6 months) graphs in order to get some wider perspective and the trend confirmation.
Graph 3. The price change of an item in the span of six Months
Graph 3. shows us that our item's price is the highest in 6 months, and starts to stabilize, which most likely means that it will start to drop. We should not buy the said item in this situation, and wait for the price to develop instead. The right time to buy this item will come with the price stabilization after the drop (look at the periods marked with green rectangles on the Graph 2. for a reference).
Now that we know the basics of Graph reading, let us look at two more methods of gaining the important GE knowledge.
- Read the patch notes! Updates can greatly affect item prices, by making them more useful or useless. When an item becomes more useful, the Demand for it will rise, and therefore it's price will increase; you should take full advantage of that, and stack up on the said item immediately after identifying it in the newest patch notes. This situation will be reversed if an item becomes less useful, easier to come by, or straight up useless; if you have the said the item in stock, you should get rid of it immediately to avoid Gold loses.
- Use Friends Chats dedicated to trading. They are a great source of knowledge about prices, price margins, and upcoming mass item buyouts. Just remember to follow the rules of these chats (they can be found on corresponding Reddit posts for example), or you will be, most likely, kicked.
Armed with our new knowledge, we can proceed with our ultimate goal, which is, of course, making a lot of Gold via the Grand Exchange. As mentioned before, there are two main ways of doing it; we will now describe both of them in detail, so you can choose the one best suited for you, or just start using both for even higher potential gains.