Investing in biotech stocks is a tricky and risky endeavor, but there's a lot investors can do to increase their chances of success -- or at least avoid total failure and the loss of their funds.

Here are three quick tricks that'll help to guide your biotech investments. You'll find them to be the most useful when you're evaluating whether to buy shares of a given company, but they'll also help you to understand when one of your holdings is entering a risky period.

Many of the biggest opportunities in biotech stem from companies that haven't generated any revenue from sales of a medicine yet. With no income, those early stage businesses are usually in a race against time to commercialize a product before their money runs out and they have to shut down.

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Source Fool.com