|RuneScape Flipping Guide For Beginners|
|12/14/15 - 11:02PM - 1 year ago - Last Edit: 12/14/15 - 11:07PM|
|Posted by: Divine|
Rsn: Divine Ploow
RuneScape Flipping Guide For BeginnersFlipping is the easiest way to get into merchanting on RuneScape, but a lot of people struggle with it, never become really good it and never get to investing. And yet, there are thousands of flipping guides on YouTube. I’ve watched dozens of them, but they all make the exact same mistakes. In this guide I’ll teach you the right way to flip, which will allow you to make progress much faster.
This is part one of the flipping guide, which will focus on what is called active flipping. Active flipping is all the flipping you do when you are in the game, updating your Grand Exchange offers as soon as you can. I have created a video of this guide, which you can view below. If you prefer the written version, read on!
I’ll explain you about 6 things in this guide:
1. How flipping works.
2. Where all the other guides get it wrong.
3. Finding items.
4. How long you should keep your offers in.
5. What to do when you mess up.
6. Improving your profits.
In the second part of the guide I’ll explain inactive flipping (to be created), which is the flipping that you do when you’re not there. Perhaps you’re asleep, at school or at work, but you’re still making money passively. You can’t do inactive flipping until you know about active flipping though, so let’s get into that first.
Part 1: How flipping works.The way every flipping guide ever explains you how to flip is like this:
1. You buy a commonly traded item like nature runes, magic logs, sharks or dragon bones for 5 or 10% over the med GE price.
2. You remember that high price as this will be the price you sell at later on.
3. You instantly sell the item you just bought for 5 to 10% below the med GE price.
4. You remember this low price as this will be the price you buy at later on.
This process is what we call a pricecheck. It costs you a little bit of money, but you can then make profit by flipping the item since you now know what to buy and sell for.
Most guides will tell you to then buy 1 gp over the low price, which is called overcutting and to sell 1gp below the high price, which is called undercutting. This is done to get priority over the offers of other merchants, but it is actually a really bad idea.
Part 2: Where all the other guides get it wrong.Imagine you have an offer in for 10k dragon bones for 2683 each, you’ve already bought 451 of them, but then all of a sudden you no longer get any of them. You pricecheck the dragon bones again and then find out that the new buy price is 2684 gp. Someone overcut you by 1gp, so what do you do? Most people will cut this person back and start buying at 2685 gp. Then the other person finds out what you did and buys at 2686 gp. This goes on and on until the profit margin of the item is ruined or until someone gets lucky to get their entire offer filled.
A much better way to go about this is to always set the same price as the other person. At the end of the day it’ll get you the stock just as fast as constantly overcutting or undercutting the other person, but you’ll have to change offers less often and the profit margin won’t shrink as fast. The live prices on the site can help you to see when the buy and sell prices of an item changed so you don’t constantly have to check it yourself. On the Dragon bones graph below can see that people have been cutting each other like crazy, even when the margins are this small. You’re not going to flip Dragon bones for 10 to 20 gp each, but as you can see there are moments when you can get 60 to 100 gp each.
Keep in mind that even if you use the same prices as others, there will still be people that keep cutting your prices, competition is a real pain when you are flipping. Just continue to use the same price as them, there is nothing else you can do about that other than being patient or switching items.
Part 3: Finding items.Speaking of items, this is like the #1 request in merchanting ever: “What item should I flip?”. Stop asking this question. If you need others to tell you what to flip, you are never going to become any good.
Getting inspiration for items is really easy. You go to your skill tab, click on a random skill and start scrolling through the list to find a cheap commonly used item. You then pricecheck it to see if the margin is decent, if it isn’t then you try the next one, until you find something worth your time.
If you feel like this doesn’t work for you, then go to the Merchz logs, view some of them and see what people like to flip. This can be a great source of inspiration, just don’t copy their prices, not even if they were just uploaded, because they will always be outdated. Only use this for item inspiration or you’re just going to lose money.
A third way to find items is to look at the game updates of the month. These always make certain items more popular which can make them better for flipping, while other items become risky and should be avoided. I talk about this each month in the BTS Merchanting review videos. If you ignore the updates of the month in your flipping, it is pretty easy to lose a lot of money by making bad decisions.
Once you start flipping items, you need to build up a list of stuff that works well for you. This list will constantly change and evolve, but it will help you to find alternative items to flip when you can’t find any good ones. There are always multiple items on your list that are worth flipping at any given time. One of the basic skills any merchant must have is the ability to find your own items, so stop asking others what to do, or you will never progress.
Most guides will tell you to look for items with big margins, but this is why a lot of people struggle to make money, as items with big margins are not necessarily always the best flips. Don't get lured into flipping an item just because it has big margins as this can can go wrong very easily.
Big margins are caused by volatility or low volume of the item, so you really need to check the graph before flipping an item to see what the realistic buy and sell prices are. If you don’t do this, you’re going in blind and that’s always risky. If you’re just getting started and all of this seems quite confusing, then just take it easy and don’t buy into items too high. You can always take on larger risks in the future to potentially make more profit.
Part 4: How long you should keep your offers in.Something you will hear me say often in my guides is that you need to determine whether an item is worth your time, money and effort. How do you do this?
To help you with this, I created the “How long should my flip take” formula. It will help you to decide whether a flip will be worth doing for you, no matter how much cash you have. Just follow the steps to calculate it.
I put 2 examples below the formula. If you look at the first one, you use 37M cash for the flip out of your 100M total cash stack. You think you make around 3M per hour on average and this flip should make you 670k profit once it buys and sells. That should take you a maximum of 36 minutes in total.
Keep in mind that it’s not a disaster when you have to go over this time, it just means that you can do better than this and may have to look for another item. I’m also not saying you should check this for every single flip, that would be a nightmare. It’s just a simple way to give you an idea of what to expect whenever you’re wondering.
Now some people will say: "Why does this even matter? This shit is way over the top. Profit is profit right?" If you’re ok with mediocre results then yeah that’s ok. If you want to take a week to make 5M profit using 100M cash, be my guest,bBut we both know you can do better than that.
If you want to become good at flipping and get to the point where you make more profit than the people you once looked up to, then you must look at the amount of time, money and effort you put into your flips and focus on the ones that will actually be worth it for you. Don’t look too much at how others are doing, focus on your own progress and keep trying to improve yourself.
A lot of people ask how long it will take them to make a certain amount of profit with a certain amount of cash, like how long will it take me to go from 100m to 1B cash. One person could do it in 2 months while another would take 8 months, there is no way to say. It depends on your experience, the effort you put in, the decisions you make and at what times you flip. Timing matters a lot. As you know the amount of players online varies a lot. During peak hours there are twice as many players online as during the quiet hours, which means that you generally have slower flips and bigger margins during quiet hours and faster flips with smaller margins during peak hours. Keep this in mind for your flipping.
Part 5: What to do when you mess up.Sometimes things will go wrong despite determining the risk factor beforehand, so what do you do when a flip crashes on you? You could wait until the item reaches your buy price again and sell off for break even, but what if that takes a week? You could have already made back the loss and a lot more profit in that time.
To determine how long you should wait at most, I created the “Should I sell off and cry” formula.
It works the same way as the other formula, except now you divide by estimated loss instead of estimated profit. So if you make 3M/hr with 100M and your 37M flip crashes 5M on you, then you can wait about 4.5 hours at most. If you sold off now, it would take you 4,5 hours to flip back the 5M loss using that 37M cash. If you don’t sell off now, there is of course the risk it crashes even further on you. You will need to assess by yourself in that situation how big that chance is. Make sure to study the graph again and don’t forget about updates or announcements that may have just come up in the RuneScape news.
At the end of the day, don’t focus too much on the end result, just make sure you keep making progress. Sometimes this will go at the cost of a loss. Don’t see this as a bad thing and don’t be too afraid to lose money, it happens to everyone. As long as you learn from it, it’s all good.
A final important tip is to never put all of your cash into one or two items as you take unnecessary risks. You have 8 Grand Exchange slots per account for a reason. Fill as many of them up as you can at all times, even if it means you’re not flipping the full limit of the item. It is better to have 8 partial offers in and see which items work the best, than only flipping one or two items at a time. You can always cancel some of your partial offers to buy the rest of the limit of the items that worked well. If you don’t know the limit of how much you can buy of an item per 4 hours, just go to Merchz.com, search for the item and you’ll see it right there in the table, or above the graph. There is no limit to how much you can sell per 4 hours.
So now you know how to flip properly, let’s walk you through it once more:
Step 1. You pricecheck items on the list that you’ve built up until you find one with the potential profit that is worth doing for you. If you can’t find anything on your list, get some inspiration from the Merchz logs.
Step 2. You look at the graph of the item to make sure you aren’t taking too much risk.
Step 3. You put in your buy offer and later on your sell offer for the exact same prices as you pricechecked for.
Step 4. You evaluate whether it is worth your time, money and effort and see what you can learn from the flip for next time.
If you keep on repeating these steps, you will make money in the long term and learn to understand how a lot of items behave. This is what leads to the final step, improving your profits.
Part 6: Improving your profits.Let’s say you are flipping those dragon bones from the beginning. The profit margin right now is only 21 gp, but you know from experience that you can easily get 60-80gp profit each as you’ve flipped them dozens of times. So instead of buying and selling at the prices you pricechecked at, you can try to buy lower or sell higher. This will sometimes lead to nothing happening, but over time you will find the sweet spots to flip at and become really good with certain items. Keep practicing, even if you’re just moving the price a little bit at a time.
Once you understand items better, you can begin to inactive flip them or even short term invest in them. If you want to learn more about that, then check out my guides on them. I hope the active flipping guide helped you to get started with flipping or that you learned how to properly do it this time.
Don’t hesitate to start your own Merchz log. You don’t need to compete with others, you can simply track your own progress and look back at how you’ve grown over time. It is a great way to get tips from others and to motivate yourself to keep going.
If you have any questions other than what items you should flip, feel free to ask them in the comments below or stop by in the chatbox.
Goodluck your with flipping!
|#4017 12/15/15 - 7:49AM - 1 year ago - [quote]|
|Posted by: Jackolas|
0Excellent guide this was really useful for me filled a few holes in my basic knowledge. Can I ask where you got the players online data from?
|#4018 12/15/15 - 7:51PM - 1 year ago - [quote]|
|Posted by: Divine|
Rsn: Divine Ploow
Excellent guide this was really useful for me filled a few holes in my basic knowledge. Can I ask where you got the players online data from?
Thanks Jackolas, I also saw you posted it on Reddit
The players online data came from 07tracker.com.
|#4019 12/15/15 - 8:59PM - 1 year ago - [quote]|
|Posted by: Jackolas|
0Anything for that sweet reddit karma thanks
|#4020 12/16/15 - 7:16PM - 1 year ago - [quote]|
|Posted by: J03|
0Thank you, still learning...very slowly lol
|#4029 12/26/15 - 12:06AM - 1 year ago - [quote]|
|Posted by: eddybot|
0Getting back into it after a long break, this was a useful refresh, thanks!!