13 Best Quotes On Trading By Paul Tudor Jones

INVESTOPAPER

Paul Tudor Jones is one of the successful traders and a billionaire hedge fund manager. He is the founder of Tudor Investment Corporation established in 1980. He mainly emphasizes the need to protect oneself while trading.


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Here are some of the best advice by Paul Tudor Jones regarding trading.

Best Paul Tudor Jones Quotes On Trading

“The most important rule is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. I do that so I can define my maximum drawdown. Hopefully, I spend the rest of the day enjoying positions that are going in my direction. If they are going against me, then I have a game plan for getting out.”


“I will keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst.”


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


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


“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?”


“Where you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt. After a while size means nothing. It gets back to whether you’re making a 100% rate of return on $10,000 or $100 million dollars. It doesn’t make any difference.”


“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.”


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


“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… 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.”


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


“Markets trend only about 15 percent of the time; the rest of the time they move sideways.”


“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”


“I’m looking for 5:1 risk /reward.  Five to one means I’m risking one dollar to make five.  What five to one does is allow you to have a hit ratio of 20%.  I can actually be a complete imbecile. I can be wrong 80% of the time, and I’m still not going to lose.”


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