Answers - Finance

Q. What is a basket?

A basket is a group of up to 50 stocks that you can trade, manage and track as one entity.

In another article, I wrote about a rather conservative method of being in the stock market. See: "A Triple Dipper: How to Make 3 Profits o

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

n 1 Stock" at http://www.traderaide.com/Selected_Articles/Tripple_Dipper.html.

This time let’s talk a little about trading "baskets". The definition above maybe needs to be expanded just a bit. You can trade baskets using longer term buy and hold strat

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

Examples of combination products may in

gies, a shorter-term swing trading approach or as a day trader. A basket of stocks is nothing more then any group of stocks that someone has grouped together for any of a number of reasons. They may be of the same sector, or they may be made up of a num

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

ber of stocks in different sectors.

An example of a few baskets could look like what is sited below. To save time and space I’ll use the stock symbols only. You can look them up later if you are interested. Let’s say you see stem cell research as the 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

ing of the future and wanted to be invested in it. If you don’t know which stock is going to fair the best, you may want buy a basket of stocks that is made up of ASTM GERN and STEM. This would be a basket of stem cell stocks. Now let’s say you think th

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

Combination pro

Internet stocks look good and, again, you are not sure which ones will do the best. In your Internet basket you may want to pick up some shares of EBAY, YHOO and AMZN. Obviously your basket can contain any number of stocks you want. Many online brokers

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

will actually allow you to set up baskets in your account, and you can put in a sell order all at once on the entire basket or pick and chose which ones you want to sell. I’m not recommending these stocks in any way, shape or form, but merely using the

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

as examples.

Okay, that’s pretty basic, but I’m sure you get the picture. The examples above would more or less be the type of baskets you would probably be thinking of holding for some time and not day trading.

Most day traders have an entirely diff

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

rent kind of basket of stocks. A day trader may have any number of stocks in his trading basket that he or she has been become very familiar with. They have studied them and even charted them for intraday movement (I hope) for some time and have learned

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

the trading habits of the individual stocks. They have a fairly good idea of how the stock moves on a daily basis with or without news. They have knowledge of how it reacts to earnings, analyst upgrades, analyst downgrades and other events that may be

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

eoccurring. They have also probably learned how they trade when hit by surprise events as well. They know which market makers to watch the closest. They also know who the main market maker in the stock is, often referred to as the axe.

A day trader’s b

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

Following aspects would a

sket may be any number of stocks. A good average could be somewhere between 25-50 stocks. But it may also be larger or smaller. I have known traders that traded one stock all day long and nothing else. I have known others that were able to watch 300 sto

dd to the challenges in developing combination products:

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

cks. Personally, I think that is way too many.

When I was trading I had a basket of about 75 stocks. Some I knew were only going to be in play on news or when reporting earnings. Others were fairly reliable moves on a daily basis. And still others were

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

extremely sensitive to any sort of news or event.

Today, if I was going to put together a basket of stocks, I would be looking at the following symbols: GOOG, TASR, TZOO, AIRT, QLGC, SYMC, PLMO, KMRT, EBAY, SINA, RIMM, RMBS, PCLN, and DCLK as well as o

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

her NASDAQ stocks. I would not over look New York Stock Exchange stocks, although many do. I would be looking at: MO, PFE, CAT, GE, GM, TYC, MRK, MOT, and others as well. Keep in mind, I am not recommending any of these stocks specifically for you to bu

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

y or trade. I am merely trying to give you an example of what a basket may look like. You have to decide yourself what stocks you would add to you your basket based on your own knowledge gained through experience and research on each stock.

I think eve

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

Professional from academic institutions, pharmaceutical industries, health care indust

y trader should have a basket of stocks he or she follows and trades. Day trading without your own basket raises the risk level and puts you in a position where you are always looking for something to trade. On slow days where the market is just not off

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

ring up much in the way of trading opportunities, you may have a tendency to jump on stocks, that under different circumstances, you would have passed on. Having your own basket of stocks will lower your exposure to risk. They may not move any better un

.

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

der slow market conditions, but at least you will have some knowledge of how they move. In Part II I will tell you about a special trading basket technique I used during the early boom days of day trading. It may still be a valid concept today.

No pe

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

Companies that provide selfless information through particip

mission is needed to reproduce an unedited copy of this article as long the About The Author tag is left in tact and hot links included. We do request that we be informed of where it is posted so reciprocal links can be considered. Email floyd@sbmag.org

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.answers.org.ua/article/104625/answers-Trading-Baskets-Part-I.html">Trading Baskets Part I</a>

BB link (for phorums):
[url=http://www.answers.org.ua/article/104625/answers-Trading-Baskets-Part-I.html]Trading Baskets Part I[/url]

Beware of some advertised business opportunities in the medical billing field. Some are out-and-out scams. The FTC is watching these scammers and has even brought charges against some.

In a previous installment, we spoke about how to come up with a list of persons you currently know. Although everyone on that list will not necessarily become your client, everyone can lead you to clients. In this section, we will talk about how to get referrals from all of the people on your contact list and what to do once you have those referrals.

Have you ever wondered why it is very difficult for you to make a headway in the affiliate marketing game? Why have you signed up for so many programs with so much expectations and yet you have never...

Tags

Links

Answers - Trading Baskets Part I

Related Articles: