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Trading Wisdom – Paul Tudor Jones

Paul Tudor Jones
Turned $1.5 million into $300 million in five years
“That cotton trade was almost the deal breaker for me. It was at that point that I said, “Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?”
I had to learn discipline and money management. I decided that I was going to become very disciplined and businesslike about my trading. I spend my day trying to make myself as happy and relaxed as I can be.
If I have positions going against me, I get right out; if they are going for me, I keep them. I am always thinking about losing money as opposed to making money. Risk control is the most important thing in trading. I keep cutting my position size down as I have losing trades. (more…)

My favourite Tudor Jones quotes

paultudor“First of all, never play macho with the market. Second, never overtrade”

“I spend my day trying to make myself as happy and relaxed as I can be. If I have positions going against me, I get right out; If they are going for me, I keep them.”

“Risk control is the most important thing in trading”

“Dont ever average losers. Decrease your trading volume when you are trading poorly, increase your volume when you are trading well. Never trade in situations where you don`t have control. For example I don`t risk significant amounts of money in front of key reports, since that`s gambling, not trading”

“If you have a losing position that is making you uncomfortable, the solutuion is very simple: Get out, because you can always get back in. There is nothing better then a fresh start.”