Why would anyone even consider purchasing such card for such a high value? Are they die-hard fans? How can anyone be a die-hard fan of someone who just entered the league? My only guess is that these people are buying now and probably flipping them for even higher price tag for a nice hefty profit.
So, what does this have to do with trading? Oftentimes, we are taught to only buy low and sell high, that this is the only smart way of trading. I believe this statement still holds true, but it’s so hard to pick the bottom, buy the stock, and then sell it as it climbs up in price. I have personally testified to this in my previous post, Jim Joyce is Forgiven: The Worst Call Ever. So investors are doing away with this method and buying stocks high and then selling them even higher for a profit. I believe that’s what these baseball card investors are doing. It’s risky because Stephen Strasburg cards are not actually as valuable as they seem. It’s all hype and speculation. Just like stocks, if you can ride the hype and speculation of a hot stock pick, you can make a good chunk of change.
To start trading right away, open an online brokerage account with low trade commission fees. I previously wrote how you should wait to Open an account at TradeKing, but I rescind that statement. I fully support and suggest TradeKing as your online broker. Their commission is one of the lowest I can find at $4.95/trade.