i'm not sure about selling ithems becouse i played the game long time ago. but dont be afraid about leveling. i have never reached some kind of level cap and if there was some and you reached it, you shouldnt be afraid niether becouse on the second island you can reset all the skill points you have gained and, for example, get rid of old magic shot or whatever it was called (3 shots in a row) and chose something more powerful like rock rain or errr that satanic spell Clara had
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