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Top Articles - Commodity Futures and Options Trading- Money Management, Risk and Trading Logic, PART 5
Possibly the most important aspect to get right in trading is survival. This is number one. Without surviving the bad times we are gone, with no hope. Money management and risk may sound like boring subjects, but read on t
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
o see how exciting they can be once you learn the concrete reasons and logic for their use. You may never trade the same way again!
If you are trading at 70% accuracy, you can risk perhaps 10% on each commodity trade and
If you are trading at 70% accuracy, you can risk perhaps 10% on each commodity trade and
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
urvive the bad runs. But, even a 70% accurate commodity futures trader will have times when he is wrong 5-6 times in a row and more. The best traders risk less than 5% on each trade. That’s what having a big bankroll is al
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
about. Not to carry large positions, but to survive the bad times and be able to trade another day.
Commodity futures pros do not have the luxury of blowing out their accounts like someone who has a day job and trades fo
Commodity futures pros do not have the luxury of blowing out their accounts like someone who has a day job and trades fo
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
a hobby. It’s like playing poker and having the advantage of the most chips at the table. Probability smiles on those who can hang in there the longest to let the odds swing their way. Those who are under-capitalized, thu
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
in for a short spell, (risk a lot on each trade) have to be "lucky" to catch a run before their chips disappear. That's why we need to have a method that attempts to identify, "high probability, low risk" trades. Remember
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
this phrase: "high probability, low risk trades"
If you have less commodity account money to trade with than you desire, you can also gain this "deep pockets" edge by reducing your trading size. Most commodity futures an
If you have less commodity account money to trade with than you desire, you can also gain this "deep pockets" edge by reducing your trading size. Most commodity futures an
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
options traders could easily reduce their normal position size by one-half and instantly become better traders. Reduced pressure and survivability are only two of many reasons to trade smaller.
One more point about losse
One more point about losse
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
. Whether you use a mental or actual stop loss order, this exit point must be determined based on the specific market set up or conditions and not based on how much money you feel you should risk that day. You should start
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
by deciding how far the market needs to move to negate your set up to make you wrong.
If price needs to go a long way to make you wrong, then this is not a low risk set up, now is it? Once you determine this distance, the
If price needs to go a long way to make you wrong, then this is not a low risk set up, now is it? Once you determine this distance, the
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
and only then can you decide on how many future contracts or options to buy. If your money management parameters say to risk $1000, and the distance to prove you wrong is $500 a contract, then that means you can hold only
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
two futures contracts. That’s it.
Many commodity futures traders do this backwards by saying they want to buy ten futures contracts – now where do they put their stop to risk only $1000? The stop will probably be too clo
Many commodity futures traders do this backwards by saying they want to buy ten futures contracts – now where do they put their stop to risk only $1000? The stop will probably be too clo
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
e and it will be like giving money away. It’s just another form of over-trading. The commodity market doesn’t care how much money you want to risk. The only concern for you is at what point are you wrong and that’s the poi
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
t you want to throw in the towel for your predetermined loss.
With a small position you can let the market fight to get your money by traveling a long way, breaking through stubborn support or resistance, or chopping nowh
With a small position you can let the market fight to get your money by traveling a long way, breaking through stubborn support or resistance, or chopping nowh
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
re for a period of time. Whatever you do, don’t load up on a commodity position with more than your normal risk amount and then place a close stop and think, “this time is different.”
Play the game for the long run with
Play the game for the long run with
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
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
very trade executed as perfectly as you can. The keenest competition out there is trying to get your money by doing things correctly every time. Don’t make it easy for them. Stay in the game, trade small, and execute your
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
plan flawlessly every time. This will give you an edge over the vast public. Public speculators are generally poor traders with little discipline and plans. Be better than them and you have a chance of coming out ahead. Do
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
't worry about the superstars. There will be times when you eat their lunches too. Nobody wins all the time.
I focus much on loss strategy because if you can greatly reduce them, then the profits will take care of themsel
I focus much on loss strategy because if you can greatly reduce them, then the profits will take care of themsel
.
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
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
es. Realize that losses are part of the commodity futures and options game and no perfect trading system exists. Demanding trading perfection of yourself is futile and a sure road to failure. To make money, you don’t have
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
to be the best trader in the world - just better than most!
Good Trading!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used
Good Trading!
There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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