Summary - Finance

1. Never trade with money you can’t afford to lose.

It’s a classic mistake that is just a recipe for disaster. If your next trade jus

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

t has to be a winner or else you won’t be able to pay the rent or buy food for the family then you just can’t trade objectively. Generally thi

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

is referred to as “trading with scared money”. Trading with scared money will always lead to trading out of emotion rather than logic.

If yo

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

u are in this situation then stop trading immediately. Make sure you have your monthly expenses covered and put a regular amount away for a ‘t

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ading fund’. Only trade again when you have sufficient to cover your trading system’s estimated requirements.

2. Don’t wait for the perfect tr

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ade.

Nobody enjoys a losing trade, unfortunately that’s just part of the game. It’s easy to sit back and demand more and more confirmations t

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

at the trade that you are about to enter is going to be profitable. Perhaps you tune into Bloomberg and wait for the commentators to agree wit

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

h your view or just wait a couple of days to be absolutely sure that the breakout that you saw happening really is happening. Perhaps you ask

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

your friends and colleagues what they think. Alternatively, some traders have a list of a dozen indicators that all have to show green before

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

they press the button.

Not being reckless and demanding a little confirmation is a good thing. When taken to extremes though will lead to severe proc

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

astination. If you find yourself always saying ‘I knew that trade would be a winner, if only I’d got on it sooner’ or you start chasing trades long after the

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

opportunity has gone just because you saw it first then you know you need to cut down on the confirmations.

Just remember there are no guarantees in trading.

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

e confident in your system and take the trade as soon as it is signalled.

3. Don’t get carried away by a large winning trade.

If you trade l

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ong enough eventually you’ll have a ‘spectacular’. Making 50% in a week or doubling your money in a month. Suddenly you start to feel invincible. You calculat

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

how quickly you’ll become a millionaire and you start to browse the Ferrari or Aston Martin websites!

The market has a nasty habit of bringing such dreams do

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

wn to earth and all too often you can find your best month ever is quickly followed by your worst week ever where you lose everything you made and more.

Alwa

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

s remain focused on your trading system. Don’t start to think you can outsmart the market.

4. Don’t have your own opinion.

Your opinion mean

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

s nothing to the market. You are one person against tens of thousands of other traders. If you’ve ever found yourself screaming at your trading screen that th

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

market is wrong then you need to let go of your own opinion and follow what the market is doing.

Perhaps your opinion on market direction for the long term i

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

s correct but in the short term all those differing opinions of all those tens of thousands of other traders can cause wild fluctuations on any particular day

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.summary.org.ua/article/102827/summary-Top-Trading-Disasters-and-How-to-Avoid-Them--Part-I.html">Top Trading Disasters and How to Avoid Them - Part I</a>

BB link (for phorums):
[url=http://www.summary.org.ua/article/102827/summary-Top-Trading-Disasters-and-How-to-Avoid-Them--Part-I.html]Top Trading Disasters and How to Avoid Them - Part I[/url]

One thing you should know before entering the nursing profession or for that friend of yours, who decided to become a Red Cross nurse after testing her life choices at least twice, is that Nursing has its hazards.

Do you call yourself a solo professional and have you launched your consulting business? Are you sure you are the solo professional that you profess? So many people are not the professionals that they claim to be out there. How can I make such an unprofessional comment you ask?

Tags

Links

Summary - Top Trading Disasters and How to Avoid Them - Part I

Related Articles: