When traders approach the biotech stocks sector, they often believe that their job it to predict what stock is going to make a breakthrough in developing a new drug or treatment that will send the stock soaring. This is definitely the dream that is sold to many thousands of novice traders and investors, but in reality no one can know what the outcome of research and development of a new drug or treatment before it is completed. And more importantly, most of this research will ultimately fail. With this in mind, you have to know how to allocate your funds if you hope to successfully navigate this sector. Here are my thoughts on the topic.