How would Newton trade stocks if he were alive?
Having lost $2.72 million USD in today’s money due to speculation in The South Sea Company stock in the 1720s, he would be very vary about hyped-up stocks that go up without a reason. He claimed to have said: “I can calculate the motions of heavenly bodies, but not the madness of people.”
However, a little known fact is that Newton first invested a small amount prior to the South Sea bubble and exited at a profit in the early stages before the bubble really got going. Newton then sees his friends getting rich as the bubble really gets going and re-enters near the peak of the bubble with a lot of money. Newton had to exit broke after the stock falls roughly back to where he had initially invested just a small amount of money.
If Newton were to be alive today, he would using our Trailing Stop Loss alerts.
How are you protecting your profits?