Wednesday, September 12, 2007

Stocks and Options and Science?

You know, banks would have us believe that stocks and options are dangerous. To some extent they are. Like driving a car, you need to know what you are doing. Stocks and options share with science that they have their own vocabulary. The jargon of the finance world, like that of the science world, is worth learning. The rewards are many.

I am not recommending that you go out and get into stocks and options any more than I would recommend driving a car without knowing what you are doing. Even when you know, you must stay ever vigilant. Yet, if you "safely" keep your money in the bank at 1 or 1.5, or even 3%, the inflation monster will eat you (and your money) alive. And while you are safely at 1.5%, the bank is using stocks and options to make 12-35% with your money and then keeps the difference between that percentage and what they give you. With a portion of your money, you could risk, lose half, and come out ahead of where you'd be if you stay safely at the bank. You need to learn the jargon (http://tradeoptioned.blogspot.com/2007/08/some-new-changes.html), understand math and charts, and, know what you are doing. Do not risk borrowed money, or your house, or college fund, insurance,nor retirement. These are other aspects of your financial house that you need in order.

So, where does science fit in? The analytical skills and chart reading skills are critical in science. Practice reading financial charts and graphs can synergistically improve your interpretation of data in science, strengthening your science abilities. Enjoy the overlap in these seemingly different fields and grow in both.

Dr. J

(c)2007 J S Shipman

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