Archives of “paul tudor jones” tag

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HEDGE FUND LEGEND: If One Of My Managers Is Getting Divorced, I'll Pull My Money Out-Must Watch Video

  
Education, Video
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The Washington Post has obtained footage of hedge funder Paul Tudor Jones from a panel discussion at the University of Virginia last month with fellow fund managers John Griffin and Julian Robertson. 

 During the panel discussion, PTJ made some comments that the biggest killers to trading success are divorce and women having babies.  

Here’s what he does when on of his manager’s is going through a divorce: 

“… Like, one of my No. 1 rules as an investor is as soon as my manager, if I find out that manager is going through divorce, redeem immediately.  Because the emotional distraction that comes from divorce is so overwhelming. The idea that you could think straight for 60 seconds and be able to make a rational decision is impossible, particularly when their kids are involved. You can automatically subtract 10 to 20% from any manager if he is going through divorce.” 

Watch the video below: Don’t Miss to WATCH 

[ooyala_video_embed ec=0yZmF1YjqbuW2Cm-89PlfzfaswMrngJf][/ooyala_video_embed]

Trading happiness

  
  Education
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“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.”

Paul Tudor Jones

A loss never bothers me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does damage to the pocketbook and to the soul.”

Jesse Livermore

EXCELLENCE TAKES HARD WORK

  
  Education
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Paul Tudor Jones expressed the core of the trader’s work ethic in this year 2000 interview excerpt:

Q: What’s your competitive advantage as a trader?

A: The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge. Because I think there are certain situations where you can absolutely understand what motivates every buyer and seller and have a pretty good picture of what’s going to happen. And it just requires an enormous amount of grunt work and dedication to finding all possible bits of information.

Qutotes from Richard Dennis & Paul Tudor Jones

  
  Education
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Richard Dennis

“when you start, you ought to be as bad a trader as you are ever going to be.”

“I always say that you could publish trading rules in the newspaper and no one would follow them. The key is consistency and discipline. Almost anybody can make up a list of rules that are 80 percent as good as what we taught people. What they couldn’t do is give them the confidence to stick to those rules even when things are going bad.”

“my research on individual stocks shows that price fluctuations are closer to random than they are in commodities. Demonstrably, commodities are trending and, arguably, stocks are random.”

“There will come a day when easily discovered and lightly conceived trend-following systems no longer work. It is going to be harder to develop good systems.”

“The secret is being as short term or as long term as you can stand, depending on your trading style. It is the imtermediate term that picks up the vast majority of trend followers. The best strategy is to avoid the middle like the plague.”

Paul Tudor Jones

“First if all, never play macho man in the market. Second, never overtrade. My major problem was not the number of points I lost on the trade, but that I was trading far too many contracts relative to the equity in the accounts that I handled.” (more…)

7 Things for Traders

  
  Education
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The definition of man·age:number7

  • To direct or control the use of; handle.
  • To exert control over.
  • To make submissive to one’s authority, discipline, or persuasion.
  • To direct the affairs or interests of.
  • To succeed in accomplishing or achieving, especially with difficulty; contrive or arrange.

1. Traders must be great risk managers.

“At the end of the day, the most important thing is how good are you at risk control.” -Paul Tudor Jones

2. Traders must manage their own stress.

 Trade position sizes that keep your stress level manageable, if you can’t talk calmly to someone while trading you are trading too big.

3. Traders have to be able to manger their emotions, we have to trade our plan not our greed or fear

“There is nothing more important than your emotional balance.” – Jesse Livermore (more…)

Trading Wisdoms

  
  Education
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“I absolutely believe that price movement patterns are being repeated; they are recurring patterns that appear over and over. This is because the stocks were being driven by humans- and human nature never changes”.

-Jesse Livermore (Considered by many to be the greatest stock market operator ever. Made 100 million dollars in 1929 stock market crash. Made several other multi-million dollar fortunes in his trading career).
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“You have to cut your losses fast. The secret for winning in the stock market does not include being right all the time. The key is to lose the least amount possible when you are wrong”.

-William J. O’Neil (In my opinion, the best stock market operator in the world today. Has made an incredible fortune trading the stock market. O’Neil is the founder of Investors Business Daily. Much of my stock market education and training has been from William J. O’Neil).
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“Whatever method you use to enter a trade, the most critical thing is that if there is a major trend, your approach should assure that you get in that trend”.
-Richard Dennis (Turned 400 dollars into a fortune of at least 200 million dollars by using his remarkable trading skills).
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“I am primarily a trend trader. In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell”.
-Ed Seykota (One of the greatest traders of all time. Turned 5000 dollars into an incredible 15 million dollars or more).
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“The most important rule of trading is to play great defense”.

-Paul Tudor Jones (An amazingly consistent and successful trader. In 2006, earned a whopping 750 million dollars).
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“Being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong”.
-Bernard Baruch (Fantastic trader who earned ten’s of millions of dollars in the first part of the 20th century).
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“The greatest safety lies in putting all your eggs in one basket and watching that basket”.

-Gerald M. Loeb (Amassed many millions in the stock market during his long career).
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“I am looking for the strongest stocks in the market, in terms of both earnings and the technical picture”
-David Ryan (Multiple time winner in the stock division of the U.S. Investing Championships).
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“Most of my success has been due to my hanging on while my profits mounted. There is the big secret”.
-Arthur W. Cutten (Gained wealth and prominence, early in the 20th century, as a commodity trader, mostly in the wheat market.
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“I think the secret is cutting down the number of trades you make. The best trades are the ones in which you have all three things going for you: fundamentals, technicals, and market tone”.

– Michael Marcus (In a ten-year period, he multipled his company account by an incredible 2500 times). 
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“Whenever I enter a position, I have a predetermined stop. I know where I’m getting out before I get in”.
-Bruce Kovner (One of the world’s largest traders in the 1980’s. Made profits of over 300 million trading for himself). 
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“I try to assemble facts and decide what kind of scenario I think will unfold”.

-Bill Lipschutz (One of the most successful currency traders ever).
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“Virtually every successful trader I know ultimately ended up with a trading style suited to his personality”.

-Randy McKay (Turned $2000 into $70,000 his first year of trading. Went on to double digit million dollar gains).
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“The biggest misconception is the widespread belief that it is easy to make a living trading in the stock market”.
-Stuart Walton (Fantastic stock trading track record in the 1990’s).
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“If you decide to trade for a living, you have to treat it just like any other business endeavor and go into it with a plan”.

-Mark D. Cook (Great annual returns trading the markets).

Trading Quotes and Advice

  
  Education
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  • ‘Successful trading comes down to this: overcoming your personal psychological barriers and conditioning yourself to produce feelings of self-trust , high self-esteem, unshakable conviction, and confidence which will naturally lead to good judgement and winning trades based on a proven methodology’ – Courtesy of James Buzzard.
  • “If everything feels under control, you are not going fast enough” -Mario Andretti, 1978 Formula One World Champion.
  • “If you sit by the river long enough, a dead body will sooner or later float down there” – Japanese Proverb.
  • ‘Buy High, sell Higher AND Sell low, buy back lower’, – Anonymous.
  • ‘The most important rule of trading is to play good defence, not great offence.’ –
  • Paul Tudor Jones.
  • “When the facts change, I change my mind. What do you do, sir?” – John Maynard Keynes.
  • “Holding cash is uncomfortable, but not as uncomfortable as doing something stupid.” – Warren Buffet
  • “Trade the market, not the money…if you exercise your strategy with discipline, the money will follow.” – Courtesy of Umar Ali.
  • “If you ACCEPT the risk of the trade and SHARE SIZE appropriately then you should be able to trade in a relaxed and optimum state of mind.” – Courtesy of Tom Willard.
  • “The trend is your friend” – – Courtesy of Umar Ali.
  • ttitude; Success, Failure, working hard.
  • “Mentally write off the work you do, as soon as you have done it” – Courtesy of Robin Farrell.
  • “There are old traders and there are bold traders, but there are very few old, bold traders.” – Ed Seykota
  • “Falling knives have to land somewhere…..” – Courtesy of Aidan Philipson.
  • ‘The dictionary is the only place where success comes before work!’- Vince Lombardi.
  • “Luck is what you have left over after you give 100 percent” – Langston Coleman.
  • ‘Traders (Leaders) are made, they are not born. They are made by hard effort, which is the price which all of us must pay to achieve any goal that is worthwhile.
  • It’s easy to have faith in yourself and have discipline when you’re a winner, when you’re number one. What you got to have is faith and discipline when you’re not a winner.’ – Vince Lombardi.
  • “I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.” – Michael Jordan
  • ‘What sets successful traders apart?……Most people think that winning in the markets has something to do with finding the secret formula. The truth is that any common denominator among the traders I interviewed had more to do with attitude than approach’. – Jack Schwager.
  • “There is little difference in people, but that little difference makes a big difference. That little difference is attitude. The big difference is whether it is positive or negative.” – Robert Collier.‘Ours is not to reason why, ours is but to sell and buy.’ – Courtesy of Mark Moskowitz.
  • “Success is the sum of small efforts – repeated day in and day out.” – Robert Collier.
  • “A professional writer is an amateur who didn’t quit.” – Richard Bach
  • “Golf is a game played on a 5 inch Course- the distance between your ears.” – Bobby Jones.
  • “…It’s all to do with the training: you can do a lot if you’re properly trained…” – Queen Elizabeth II.
  • “The person who goes farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore.” – Dale Carnegie.
  • “You are – face it – a bunch of emotions, prejudices, and twitches, and this is all very well as long as you know it. Successful speculators do not necessarily have a complete portrait of themselves, warts and all, in their own minds, but they do have the ability to stop abruptly when their own intuiition and what is happening Out There are suddenly out of kilter. – Adam Smith, The Money Game.
  • ‘“Everyday my trading skills are getting better and better”. I repeat it like a daily mantra’ – Purportedly attributed to Emile Coue.

Quotes by Paul Tudor Jones II

  
  Education
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Paul Tudor Jones II is one of the most successful hedge fund managers. He has never suffered a losing year. His fund has returned 23% annualized gain since its inception in 1986. Paul Tudor is a momentum trader, who believes that price move and trend unfold only because of investors’ behavior.

Markets have consistently experienced “100-year events” every five years. While I spend a significant amount of my time on analytics and collecting fundamental information, at the end of the day, I am a slave to the tape and proud of it.

I see the younger generation hampered by the need to understand and rationalize why something should go up or down. Usually, by the time that becomes self-evident, the move is already over.

There is no training — classroom or otherwise — that can prepare for trading the last third of a move, whether it’s the end of a bull market or the end of a bear market. There’s typically no logic to it; irrationality reigns supreme, and no class can teach what to do during that brief, volatile reign. The only way to learn how to trade during that last, exquisite third of a move is to do it, or, more precisely, live it.

Fundamentals might be good for the first third or first 50 or 60 percent of a move, but the last third of a great bull market is typically a blow-off, whereas the mania runs wild and prices go parabolic.

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