RISK MANAGEMENT
Always Take Profits
Principle #2
The top comp is a myth and doesn't exist. Always take profits.
There are many risk management principles, and to understand them, it's best to break them down into two simple categories, BUYING and SELLING.
BUYING risk management principles are covered very thoroughly already throughout all that we do. We only recommend the right cards for the right players at the right times, Our Formula Based Rankings have Snipe Prices, so we're already massively limiting your potential downside.
So, actually, the biggest risk is SELLING.
Selling at the wrong time, and selling in the wrong manner.
This is where Principle #2 comes in. Don't buy a card thinking you're going to eventually be the top comp for that card. Sell when you're up. When you're 50% or more up on a card, a 7 or 10 day eBay auction is a solid, safe way to move out of the card for a profit.
Even if you've reached a selling marker, unless you're at the Sell By Date, don't list in an auction if you're not up on the card.
Having cards listed in the eBay BIN/OBO format leading up to a selling marker is a smart idea, so you don't miss out on offers that will put you in profitable territory.
Never try to be the top comp on a card, and never feel bad about selling early. Always take the profits and move on.
This helps you not only avoid risk, but goes right in line with Principle 1.