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One tip is to buy a workshop or 2 in a town, convert them into workshops that require a resource not produced locally that you want to sell there, then sell the workshop, creating demand for that good.
- Buy stuff from merchant when its green.
- Sell stuff that you have when its green in your inventory.
- Never buy/sell stuff that's red when you can, unless you know a place that you can buy/sell it for more/less, or REALLY need it, depending on the situation. Still not a good idea.