Biotech Trading Letter

For new subscribers, the Biotechnology Industry can be a very exciting sector for investment as well as to trade for short term profits.  Your Editor and Publisher is of the belief that the Biotechnology Sector offers the investor and trader the potential for exceptional profits but these potential profits are not without risk and with some stocks, a high level of risk.  These risks involve those stocks that have their products submitted for approval by the U.S. Food & Drug Administration.  An adverse decision could have the stock price of one of these issues plummet while the stock price of a competitive company soar.

One way of offsetting the risk of investing or trading in individual biotech issues is to trade a "Basket" of biotech stocks available through specific indices, iShares of Holders of biotechnology stocks.  Our Market Indices Cyclic Update column features the Biotech Holders (BBH), the Amex Biotech Index (BTK) and the Biotech iShares (IBB) which is indexed to the NASDAQ Biotechnology Fund. and are baskets of stocks representing the Biotech Sector.

The stocks tracked and monitored within this newsletter total just over 100 issues and are mostly traded on NASDAQ .  They represent all the issues listed in the various baskets of Biotechnology and Pharmaceutical stocks and indices.

Subscribers should be aware that since most of these Biotechnology stocks are traded on NASDAQ, some issues may have a wider spread between their Bid and Asked price and only Limit Orders should be placed when buying or selling to avoid execution price surprises.

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