Isaac Newton is often quoted regarding trading with the statement:
> "I can calculate the motions of heavenly bodies, but not the madness of people."
This quote reportedly refers to his experience during the South Sea Bubble in 1720, a speculative frenzy around the South Sea Company in England. Newton initially made a profit by investing early and selling, but he later reinvested at a higher price, only to suffer significant losses when the bubble burst.
This experience highlights how even a brilliant mathematician and physicist like Newton struggled to predict human behavior and market irrationality. It serves as a timeless lesson about the unpredictability of speculative markets and the emotional factors influencing them.