Archives of “unquenchable thirst” tag

rss

The Wisdom of the Legendary Paul Tudor Jones

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

At 56, Paul Tudor Jonesis a  self made billionaire with a net worth of 3.3 billion and is ranked as the 336th richest  person in the world, he  knows exactly how to trade the biggest money for the biggest returns. One of Jones’ earliest and major successes was anticipating and trading through Black Monday in 1987, tripling his money during the event due to large short positions. The Dow Jones Industrial Average dropped by 508 points to 1738.74 (-22.61%) on that day. While the majority of others lost more than they ever had in their lifetime, Jone’s was on the other side of their trade making a fortune. That is the sign of a truly great trader making money at the tipping points that most others miss.  Paul Tudor Jones has returned double digit annual returns to his investors for decades. He is one of the greatest traders to have ever lived, we need to sit up and listen closely to his advice, it is priceless.

Risk Management

“Don’t focus on making money; focus on protecting what you have.”

“Where you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt.”

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

Trader Psychology

“Every day I assume every position I have is wrong.”

“Losers average losers.”

“Trading is very competitive and you have to be able to handle getting your butt kicked.”

Method

“I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.”

“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”

“The concept of paying one-hundred-and-something times earnings for any company for me is just anathema. Having said that, at the end of the day, your job is to buy what goes up and to sell what goes down so really who gives a damn about PE’s?”
“The whole world is simply nothing more than a flow chart for capital.”
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?’

EXCELLENCE TAKES HARD WORK

  
  Education
#  #  #  #  #  #  #  #  #

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.

Paul Tudor Jones: The Secret To Successful Trading

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

“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.

You pick an instrument and there’s whole variety of benchmarks, things that you look at when trading a particular instrument whether it’s a stock or a commodity or a bond. There’s a fundamental information set that you acquire with regard to each particular asset class and then you overlay a whole host of technical indicators and that’s how you make a decision. It doesn’t make any difference whether it’s pork bellies or Yahoo. At the end of the day, it’s all the same. You need to understand what factors you need to have at your disposal to develop a core competency to make a legitimate investment decision in that particular asset class. And then at the end of the day, the most important thing is how good are you at risk control. 90% of any great trader is going to be the risk control.”

Paul Tudor Jones Quotes

  
  Education
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.” …

“I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” ..

The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.

Ninety-percent of any great trader is going to be the risk control.

When trading macro, you never have a complete information set or information edge the way analysts can have when trading individual securities. It’s a hell of a lot easier to get an information edge on one stock than it is on the S&P 500. When it comes to trading macro, you cannot rely solely on fundamentals; you have to be a tape reader, which is something of a lost art form.

These days, there are many more deep intellectuals in the business, and that, coupled with the explosion of information on the Internet, creates the illusion that there is an explanation for everything and that the primary task is simply to find that explanation. As a result, technical analysis is at the bottom of the study list for many of the younger generation, particularly since the skill often requires them to close their eyes and trust the price action. The pain of gain is just too overwhelming for all of us to bear

Go to top