The complete fully comprehensive guide to profitable trading.
In this edition, we shall consider another form of investment, and again unfortunately until events return to Habbo, item recommendations will not be included as it is just too hard to talk about what is selling well when nothing is actually selling. This form of investment involves buying seasonals early in the year and selling them just before release.
The idea behind this revolves around the fact that a value of an item peaks just before it is released into the catalogue if it is a seasonal, such as Christmas furni. Also in this idea is that on the other side of the year the item will generally be a lot cheaper. The diagram below helps to show the model for the price changes of these items.
The purpose of this diagram may not be immediately clear, but I shall now explain it. The white bar in the middle shows when an item is released into the catalogue, while other areas show prices relative to each other, however this is only applying to seasonals. The darker the area the more expensive the item, with the black bar being just before release. This follows in a cycle with the right of the diagram being the end of the year and the left being the beginning, with this year being a false year that has the release right in the middle. The general trend of this graph is that towards release item prices build up, and then plummet afterwards towards the start of the new year, where they build up again. However, shortly after release items will generally pick up again due to short-term investment being sold here with new items that were released that year.
The importance of this graph lies in the fact that armed with this knowledge, one may buy bulks of an item in the light grey phases and sell it on during the black bar phase. This can create very profitable long term investments, with no risk of items not selling as items are in massive demand in the black bar phase. There is one massive thing to consider however, which is that if you leave selling too late, you may roll over into the white bar phase, and lose out on quite a bit of profit, however white bar phase is normally still more expensive than the light grey phases, so this isn’t the end of the world.
Crossword Challenge clue –
Clue 19: Over how long does the diagram used in this article span for? (4 letters) _ _ _ _
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