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Which version of the game are you using, please? I know that some fixes had been implemented regarding trades and cash/budget restraints.
The overall rating of a player is relative to the league that you are managing in. So if you are managing a major league team, any players who aren't major league caliber will be ranked 20 OVR on the 20-80 scale. A quick glance at the ratings of your players at each minor league level ought to show you who is out of place (a bunch of yellow colored ratings when everyone else has red or orange is a good sign that the player needs a promotion), but the performance of a player is another good sign. I.e. does he have good or bad stats while playing at his level? Furthermore, there is a Minor League System Report that can be accessed from either the team Home Page or the Transactions screen. That report will advise you on the level that each player should be playing.
Talent/potential decreases happen somewhat randomly, but you will end up with more positive changes if your players are performing well at their level of play and likewise will see more negative changes if your players are performing poorly. If many of your players are losing potential, check their stats. It's likely that they haven't been performing well and should have been demoted to a lower level.
Does that answer your questions/concerns? Is there anything else that I can help you with?
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