Flipping

Flipping is when you speculate that the current lowest price on the AH is much lower than it should be, and you buy it, then (either immediately or later) place the same item back on the AH for a higher price.

The key to flipping just like in real estate is to know your market. You could easily lose all your gold quickly.

I woke up this morning to find 100g on my little mage project banker. So what to do. Well, i could just stop playing the AH, but that's not fun. I looked at my favorite market, the netherweave cloth market. I found many stacks at 2.5g, which is criminally stupid since you can make heavy netherweave bandages and vendor them for 3g each. So, apparently there are alot of morons on this server, and not alot of people caring about this market. So I speculated, given that the price does fluctuate wildly. I bought every single stack I could, and reposted for a copper under whatever the lowest price stack was. I did this several times during the day, since it was a Sunday and tons of people were on.

I just checked my auctions, and I have 170g. That's...what 60% profit margin from maybe half an hour of work. Not bad when your highest toon is level 11.

Recap:

1) Know your market, what the prices are throughout the week.
2) It's a very valid strategy to buy low on the weekends, sell in the middle of the week when prices are high. I've made thousands this way.
3) If it's not a fast moving market, dont' dump everything at once. (although I did ignore this rule and made out okay)