RSKillers

LumbridgeCity.com Member Writes:

hey man i was wondering whats the deal with the obby shields. i bought 100 of them cause you said green light on them and now they are down almost 4k.

LumbridgeCity.com Replies:

Yep.

Be prepared to use RULE 1.

*Always* assume I'm wrong - and always assume the Clan and YOU are also wrong... every time you put on a trade.

I also had bought into Obby Shields, and I sold out the day after the prices broke down out of the sideways pattern.  I lost some money, but the price kept going down the next day.

Get out fast when you are wrong.  ONLY hold a trade if it proves you correct immediately. Don't wait a couple days to see if you might be correct.  Get out.

Then get back in if it starts looking good again - and only stay in if you are proven correct immediately.

Once you get the hang of it, you'll find money making is boring.

One more thing.

Only invest 20% of your total merch value in any one item.

That's why I review so many items in the 5 markets we study in the weekly vids.

1. Find the best opportunity in fishes, and invest 20% of your money.

2. Find the best opportunity in metals, and invest 20% of your money.

3. Find the best merch clan opportunity and invest 20% in that.

4. Review all the Gems, Logs and Bones videos to get a better feel for the markets, then select one more item to invest another 20%.

5. Finally, I like to keep 20% cash for day-trading things.

This way, you'll never be badly hurt by an adverse move in one item.

Risk Control

It may also be helpful for me to share my strategy of buying into an item: While I do have a limit of 20% of my wealth into any one trade, I don't put all 20% of my cash up all at once.

I start with 1/4 of my total investment to test the market.

If I'm correct (Rule 1) then I buy more of the item (Rule 2).

Again - this helps me control the risk and keep my losses smaller.

You may note that Merch Clans advise you to do the complete opposite!
They say put ALL your money up, all at once.

Thank you very much for your Merch Story!

LumbridgeCity.com, here to help you learn to make lots and lots of Gold on Runescape!  And I hope this reply will help you protect yourself from a big sting again next time!

Cheers,

Linkbuilder

P.S. are you following the twitter updates?