The fully comprehensive guide to profitable trading.
In this edition of Market Watch, a very important topic to merchants who deal with slightly higher value items and who are interested in investment shall be covered, that of understanding, reading and analysing the marketplace. There shall not be any item recommendations this week however, due to events in rooms still not returning, and therefore the rest of the article shall be longer to compensate.
The important thing here with this data however, is the analysis of it when trying to buy and sell items. The main important point when buying to remember is that whichever one of the cheapest price or average is lower is the value you should be taking a value from in the first place. However an important point to look at from this is that if there are a lot of offers in the market, and the price is significantly lower then the average then this could mean that they are being used to lower the average price, so care should be taken in buying in these cases. Do not be fooled however into believing that because the cheapest price is higher, the item is rising in price, as this is often someone just trying to make sneaky profits. In order to tell if it as actually rising, other graphs are needed to also look at.
Firstly, this item may just have an erratic sale price, meaning it never has a stable price that can be pinpointed as a good guide price. Items like this will normally have changed quite substantially in a value in the space of a few days, but are generally very risky to invest a lot in.
The other main reason is that of supply and demand. When supply of an item is low all over Habbo, people will generally look to the marketplace to try and get the item. Some players will naturally put high offers into the marketplace to try and get these people when they notice a low supply, and this means if they are desperate they may often pay far higher then they would normally do. This can result in large peaks
In the other image of this graph, a black line has been plotted through the graph, showing how to analyse whether prices are falling or rising. In general this is a very simple job to do, but there are ways of creating a more accurate analysis than the simple line of best fit shown on the left. The general idea is to get a representative line to go through the graph, covering the points best as you can, so that a price rise or fall is evident. The best method for this is using a 3-point average, where every point on the graph has its point averaged with the points either side of it, and this average is plotted onto the graph, connecting all these averages at the end. This will undoubtebly create the best representation and shows whether or not the price truly has been rising or falling within the last month.
This next image shows the trade volumes each day for the last 30 days. Although it doesnt serve the same analytical purpose as the other graphs and data, this still is very useful and important, as it allows you to see if an item does indeed sell well or not, and whether or not it has been selling in large quantities at peak prices, which is generally
If you would like to see any particular topics covered in the next edition, or have any questions you would like answered, please leave a comment below.
And now for the clue for the Crossword Challenge.
Clue 7: Over how many days does the average price cover? (5 letters) _ _ _ _ _
Powered by WPeMatico



