If you’re tuned into advances in the vision care industry, investing in biotechnology companies may be well worth your investment, but you’d be wise to proceed with caution.

Houston financial advisors Richard J. Alphonso, JD, CPA, M.S.T. and Steven A. Estrin, M.B.A., say it’s important to realize that even in the best of times your chances of making a killing on any one stock are quite small. Many biotech companies have good concepts, but only a select few become profit-making ventures.

You should also be aware that the biotech industry is among the most volatile sectors of the publicly traded market. Even good companies with unique prospects can be hurt by volatile stock market conditions.

Finally, keep in mind that Wall Street usually knows as much about a company’s prospects as you do. Hundreds of analysts are devoted to reviewing reports on the progress of drug and device testing in great detail.