How did Newton go bankrupt?? 1. Stock=historical high 2. Gold=historical high 3. Silver=historical high 4. Copper price=historical high 5. Money market fund=historical high All things hit a historic high at the same time. The global market continues to strengthen, and everyone is calling for the second half of a bull market, as if gold is everywhere. But the more excited the market is, the more cautious it should be. Today, let's take a look at how Newton went bankrupt. It is the man who discovered universal gravitation, the father of physics, and the greatest scientist in human history, without exception. This genius whose intelligence crushes all sentient beings is also a "leek" in the stock market, and he lost very badly. The story goes back to England in 1720. At that time, there was a company called "Nanhai Company" that obtained the franchise rights granted by the British government and could trade with South America. Do you think that South America is covered in gold and silver? How much room for imagination is this? In addition, this company also has a government background and is responsible for helping the country deal with debt, making it the current "middle character"+"AI leader". The whole of England has gone crazy. From nobles and aristocrats to common people, everyone is trading stocks with one belief: buy in the South China Sea and get rich immediately! The stock price of Nanhai Company is like riding on a rocket. From 128 pounds at the beginning of the year, it skyrocketed all the way to the summer, breaking through 1000 pounds! It has increased almost 8 times in half a year! Our Sir Newton, who was already 77 years old at the time, served as the director of the Royal Mint and was undoubtedly a high net worth individual. He is also in this carnival. At the beginning, Newton's operation was considered perfect. When he was still relatively calm in the market, he invested 7000 pounds. After the stock price doubled, he keenly sensed a hint of risk and decisively sold, earning a net profit of 7000 pounds and a 100% return. You see, genius is genius, not only understanding science, but also understanding profit taking. If the story ends here, it will be a beautiful tale of 'scientists making easy profits in the stock market through their intelligence'. But human nature is the devil. What happened after Newton sold it? The stock of Nanhai Company has no intention of stopping, but has skyrocketed even more! The friends and colleagues around him who haven't been sold have the same wealth every day. Today I bought a mansion, tomorrow I bought an estate. Every day, people whisper in his ear, "You sold too early! Now it's all up to 800!" and "You're about to charge 1000, how much money did you make Is this feeling familiar? It's the kind of stock that you sell, and the next day it rises sharply, continuously rising. The feeling of having a heart cut like a knife and feeling like a fool. The anxiety of emptiness is more tormenting than loss. Even a century old genius like Newton couldn't withstand it. At the peak of the market frenzy, when the stock price broke through 1000 pounds, he came back! And this time, he almost bet his entire fortune, about 20000 pounds. What is the concept of 20000 pounds? This was an astronomical figure at the time, equivalent to his entire salary as a mint director for ten years without eating or drinking. Everyone knows the later story. Foam, after all, is foam. Shortly after Newton's heavy position entered the market, the British Parliament passed the foam Act, aiming to crack down on speculative companies in the market. Panic spread instantly, and the stock price of Nanhai Company plummeted, falling back to over 100 pounds at the end of the year. Countless people lost everything, but Newton lost all the profits he had earned before and even invested a huge amount of capital. After this battle, Newton left behind a timeless saying: I can calculate the trajectory of celestial bodies, but I cannot predict human madness There is nothing new under the sun. Our market today has advanced countless times in terms of technology, tools, and information transmission speed compared to Newton's era. But the underlying code that drives market sentiment has never changed: greed and fear. Especially the fear of stepping into the air. Just like now, are many people feeling a bit overwhelmed and wanting to quickly make back the money they missed a few months ago? Before clicking the 'buy' button with your finger, think about Newton. Even a god level brain like him cannot judge the short-term top and bottom of the market, nor can he maintain absolute rationality in a fanatical atmosphere. Why do ordinary people think they can? What I want to say is that the more you think the market is doing well, the more you should put risk first. For ordinary investors, the simplest and most effective way to control risk is to control their positions! Position is your bargaining chip at the table, never an all in. When the market sentiment is high and everyone is discussing stocks, what you should do is not to rush in, but to check if your position is too heavy and whether you should reduce it appropriately, putting some profits into your pocket. No matter how optimistic you are about a direction or how certain you are about an opportunity, please make sure to leave some cash in your account. This money is your confidence, the "bullet" that you dare to replenish your position when the market falls, and the guarantee that you can sleep soundly at night.