牛顿是怎么破产的?

Core Viewpoint - The article discusses the importance of caution in a bullish market, using the historical example of Sir Isaac Newton's financial losses during the South Sea Bubble to illustrate the risks of emotional trading and market speculation [3][4][18]. Group 1: Historical Context - In 1720, the South Sea Company received a charter from the British government to trade with South America, leading to widespread speculation and a dramatic increase in stock prices from £128 to over £1000 within six months, an increase of nearly 8 times [8][10]. - Newton initially profited by investing £7000 and selling at a 100% return, but later succumbed to the fear of missing out and reinvested £20,000, which was equivalent to ten years of his salary [10][11]. Group 2: Market Behavior and Human Emotion - The article highlights that even a genius like Newton could not predict market behavior, emphasizing that the underlying emotions of greed and fear have remained constant throughout history [13][15]. - The fear of missing out can lead investors to make irrational decisions, as seen in Newton's case when he re-entered the market at its peak, resulting in significant losses when the bubble burst [11][18]. Group 3: Investment Strategy - The article advises investors to control their risk by managing their positions and avoiding going "all in" during market euphoria, suggesting that maintaining some cash reserves is crucial for stability and future opportunities [19]. - It emphasizes the importance of taking profits and reassessing one's portfolio during high market sentiment, rather than being swept up in the excitement [19].