prospecthype

Another decision that prospectors have to make is whether they should only buy into a small number of players, investing most of their disposable funds into those players, or to buy less of each player, but diversify and buy more different players. Both approaches can be very successful, so let’s just take a look at the pros and cons of each.

If you buy into a limited number of players, your money is probably going to be tied up for a longer period of time while you wait for the player to increase in value. You will be able to get a lot more cards of them, therefore making your return on investment (ROI) potential exponentially greater. Unfortunately, it goes the other way too if your player doesn’t pan out…so it’s a much bigger gamble. You either win big or lose big. This type of strategy seems to generally be better for prospects that you either 1) Buy in when they are still extremely cheap, or 2) are nearly positive that they will see increases (a less-risky player).

If you spread out yourmoney into a number of different players, you are generally much safer overall from losing money, because if one player doesn’t develop like you expected, you don’t lose very much money. On the other hand, if they do see an increase in value, you likely won’t be making any enormous money, because you simply don’t have enough cards to do so. Don’t get me wrong, it’s always nice to turn a 400% profit on a $25 card and put a C-Note into your pocket, but just think if you had bought 5 of those $25 cards instead of one…And lastly, it’s usually much easier to move a couple cards than an entire stash, so you generally are more active in your prospecting when you invest in this way (which to most people seems to be fun).

The bottom line is always that if the player takes off, you are going to make money. If they don’t, you’re going to lose money. Finding a healthy balance of the above strategies that fits your personal budget is the best thing you can do to maximize your chances of making money.