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Potential ratings can change a lot, more often negatively than positively. Because these changes are largely random, it's very difficult to guess which guys will exceed their current Potential, and which prospects will flame out.
As for the Rule 5, it can go on for as many rounds as you want; it's not limited to 2 or 3 rounds, as Zekester suggests above. As Zekester points out, you must keep all Rule 5 picks on your 25-man roster for most of the season (the game will let you demote them near the end of July, actually), and because most players available in the Rule 5 aren't very good, it would be difficult to keep many Rule 5 guys unless you really didn't care how well your team performed. One exception- if a Rule 5 guy is injured, you could keep him on the 60-day DL for the whole season, then demote him when the year is up.
You also probably wouldn't want to clear out most of your 40-man roster before the Rule 5, because then most of the players you clear off the roster will be available to other teams in the Rule 5, so you might lose some good guys.
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