Paul Tudor Jones quotes

Who the heck is Paul Tudor Jones?

Paul Tudor Jones II is an American investor, hedge fund manager, and philanthropist. Jones is considered as one of the greatest traders of all time together with [Warren Buffett|warren-buffett] and [Jesse Livermore|jesse-livermore].

Paul Tudor Jones books

Paul Tudor Jones quotes

“A good system may be able to trade more markets effectively than a good trader because it has the advantage of unlimited computing power.”

Paul Tudor Jones

“A good trader will usually be able to outperform a good system.”

Paul Tudor Jones

“After a while size means nothing. It gets back to whether you're making 100% rate of return on 10k or 100 million dollars. It doesn't make any difference.”

Paul Tudor Jones

“Always maintain your sense of confidence, but keep it in check.”

Paul Tudor Jones

“Always think of your entry point as last night’s close.”

Paul Tudor Jones

“As I've told my three daughters, all of whom I've at one time encouraged to go into macro trading, any man or woman can do anything to which they set their heart and mind.”

Paul Tudor Jones

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

Paul Tudor Jones

“Borrowing our way into prosperity. We borrowed against the future, and soon we will have to pay.”

Paul Tudor Jones

“By watching my first boss and mentor Eli Tullis, I learned that even though markets look their very best when they are setting new highs, that is often the best time to sell. He instilled to me the idea that, to some extent, to be a good trader, you have to be a contrarian.”

Paul Tudor Jones

“Cash is worthless, so what do you do with your money?”

Paul Tudor Jones

“Certain people have a greater proclivity for macro trading because they don’t have the need to feel intellectually superior to the crowd. It’s a personality thing.”

Paul Tudor Jones

“Decrease your trading volume when you are trading poorly; increase your volume when you are trading well.”

Paul Tudor Jones

“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.”

Paul Tudor Jones

“Don’t be too concerned about where you got into a position. The only relevant question is whether you are bullish or bearish on the position that day.”

Paul Tudor Jones

“Don’t ever average losers.”

Paul Tudor Jones

“Eli Tullis was the largest cotton speculator in the world when I went to work for him, and he was a magnificent trader. In my early 20s, I got to watch his financial ups and downs and how he dealt with them. His fortitude and temperament in the face of great adversity were great examples of how to remain cool under fire. I’ll never forget the day the New Orleans Junior League board came to visit him during lunch. He was getting absolutely massacred in the cotton market that day, but he charmed those little old ladies like he was a movie star. It put everything in perspective for me.”

Paul Tudor Jones

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

Paul Tudor Jones

“Every trade decision is the product of some problem-solving process – human or otherwise.”

Paul Tudor Jones

“Everyone knows when I trade.”

Paul Tudor Jones

“Everything gets destroyed a hundred times faster than it is built up. It takes one day to tear down something that might have taken ten years to build.”

Paul Tudor Jones

“Everything happens for a reason.”

Paul Tudor Jones

“Failure was a key element to my life’s journey.”

Paul Tudor Jones

“Failure will give you a tattoo that will stay with you your whole life, and sometimes it’s a really good thing.”

Paul Tudor Jones

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

Paul Tudor Jones

“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.”

Paul Tudor Jones

“I always believe that prices move first and fundamentals come second.”

Paul Tudor Jones

“I attribute my own success to the Elliott Wave approach.”

Paul Tudor Jones

“I avoid letting my trading opinions be influenced by comments I may have made on the record about a market.”

Paul Tudor Jones

“I believe that great success is possible in any field — from music to mathematics to macro trading.”

Paul Tudor Jones

“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.”

Paul Tudor Jones

“I can always tell a rookie trader because he will ask me, ‘Are you short or long?’ Whether I am long or short should have no bearing on his market opinion.”

Paul Tudor Jones

“I can go into any market and create a stir for a day or two, maybe even a week. If I go into a market at just the right moment, by giving it a little gas on the upside, I can create the illusion of a bull market. But, unless the market is really sound, the second I stop buying, the price is going to come right down.”

Paul Tudor Jones

“I can’t say that I have been successful because I am better than anybody else. I was in the right place at the right time.”

Paul Tudor Jones

“I consider myself a premier market opportunist. That means I develop an idea on the market and pursue it from a very-low-risk standpoint until I have repeatedly been proven wrong, or until I change my viewpoint.”

Paul Tudor Jones

“I did a lot of analytical work, watching the market to try to figure out what made it tick.”

Paul Tudor Jones

“I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.”

Paul Tudor Jones

“I first decided I had to learn discipline and money management. It was a cathartic experience for me, in the sense that I went to the edge, questioned my very ability as a trader, and decided that I was not going to quit. I was determined to come back and fight. I decided that I was going to become very disciplined and businesslike about my trading.”

Paul Tudor Jones

“I got out of the brokerage business because I felt there was a gross conflict of interest: If you are charging a client commissions and he loses money, you aren’t penalized.”

Paul Tudor Jones

“I had tried to succeed with sheer force of will and energy and financial resources. I learned that this was not enough. What I needed were better defined goals, better metrics, and most importantly, more efficient technologies that would enable me to achieve those goals.”

Paul Tudor Jones

“I have a mental stop. If it hits that number, I am out no matter what.”

Paul Tudor Jones

“I have a very short-term horizon for pain.”

Paul Tudor Jones

“I have always been a big believer in leverage.”

Paul Tudor Jones

“I have always been a swing trader, meaning that I believe the very best money is to be made at the market turns.”

Paul Tudor Jones

“I know from studying history that credit eventually kills all great societies.”

Paul Tudor Jones

“I know that to be successful, I have to be frightened.”

Paul Tudor Jones

“I look for opportunities with tremendously skewed reward-risk opportunities. There’s no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum draw down pain and maximum upside opportunities.”

Paul Tudor Jones

“I never apologize to anybody, because I don’t get paid unless I win.”

Paul Tudor Jones

“I recognize how ephemeral success can be in this business.”

Paul Tudor Jones

“I remember the time I got run over by a boat, and my backside was chewed up by the propeller. My first thought was, ‘Dammit, I just ruined my Sunday afternoon because I have to get stitched up.’ Because I was in shock, I didn’t even realize how badly cut up I was until I saw the faces of my friends.”

Paul Tudor Jones

“I said, ‘Mr Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?’”

Paul Tudor Jones

“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.”

Paul Tudor Jones

“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

“I swore that I was going to prove to myself that I could be a success.”

Paul Tudor Jones

“I think I am the single most conservative investor on earth in the sense that I absolutely hate losing money.”

Paul Tudor Jones

“I think one of my strengths is that I view anything that has happened up to the present point in time as history. I really don’t care about the mistake I made three seconds ago in the market. What I care about is what I am going to do from the next moment on. I try to avoid any emotional attachment to a market.”

Paul Tudor Jones

“I think that we are going to be in for a period of pain. We are going to relearn what financial discipline is all about.”

Paul Tudor Jones

“I want the guy who is not giving to panic, who is not going to be overly emotionally involved, but who is going to hurt when he loses.”

Paul Tudor Jones

“I want to make sure that I never have a double-digit loss in any month.”

Paul Tudor Jones

“I was a 26-year old knucklehead, and since all my friends were getting married, I kind of felt it was time for me to do the same thing. And that was the worst reason in the world to get married.”

Paul Tudor Jones

“I was interested in becoming a trader straightaway.”

Paul Tudor Jones

“I went into the money management business because if I lost money, I wanted to be able to say that I had not gotten compensated for it.”

Paul Tudor Jones

“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.”

Paul Tudor Jones

“I would say that 85 percent of my net worth is invested in my own funds, primarily because I believe that is the safest place in the world for it.”

Paul Tudor Jones

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

Paul Tudor Jones

“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.”

Paul Tudor Jones

“I’ve done really well on the short side. There’s nothing more exciting than a bear market. But it’s not a wonderful way for long-term health and happiness.”

Paul Tudor Jones

“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. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.”

Paul Tudor Jones

“If investing was easy, if there was one formula, one way to do it, we’d all be zillionaires.”

Paul Tudor Jones

“If life ever ceased to be an educational experience. I probably wouldn't get out of bed in the morning.”

Paul Tudor Jones

“If trading is like chess, then macro is like three-dimensional chess.”

Paul Tudor Jones

“If you don’t see anything, you don’t trade. You take risk only when you see an opportunity.”

Paul Tudor Jones

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

Paul Tudor Jones

“If you make a good trade, don’t think it is because you have some uncanny foresight.”

Paul Tudor Jones

“If you want to move a large position, you don’t wait until the market is in new high or low ground because very little volume may trade there if it is a turning point.”

Paul Tudor Jones

“If you want to move a large position, you don’t wait until the market is in new high or low ground because very little volume may trade there if it is a turning point.”

Paul Tudor Jones

“Intellectual capital will always trump financial capital.”

Paul Tudor Jones

“It is not that we had any unfair knowledge that other people didn't have, it is just that we did our homework. People just don't want to believe that anyone can break away from the crowd and rise above mediocrity.”

Paul Tudor Jones

“Jesse Livermore, one of the greatest speculators of all time, reportedly said that, in the long run, you can’t ever win trading markets. That was a devastating quote for someone like me, just getting into the business.”

Paul Tudor Jones

“Judge not, least you be judged.”

Paul Tudor Jones

“Losers average losers.”

Paul Tudor Jones

“Macro trading requires a high degree of skill, focus and repetition. Life events, such as birth, divorce, death of a loved one and other emotional highs and lows are obstacles to success in this specific field of finance.”

Paul Tudor Jones

“Markets have consistently experienced “100-year events” every five years.”

Paul Tudor Jones

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

Paul Tudor Jones

“My biggest hits have always come after I have had a great period and I started to think that I knew something.”

Paul Tudor Jones

“My goal is to finish each day with more than I started.”

Paul Tudor Jones

“My grandfather told me at a very early age that you are only worth what you can write a check for tomorrow, so the concept of having my net worth tied up in a stock à la Bill Gates would be something that’s just anathema to me.”

Paul Tudor Jones

“My metric for everything I look at is the 200-day moving average of closing prices. I’ve seen too many things go to zero, stocks and commodities. The whole trick in investing is: “How do I keep from losing everything?” If you use the 200-day moving average rule, then you get out. You play defense, and you get out.”

Paul Tudor Jones

“Never trade in situations where you don’t have control.”

Paul Tudor Jones

“No matter how you cut it, there are enormous ups and downs involved.”

Paul Tudor Jones

“One learns the most from mistakes, not successes.”

Paul Tudor Jones

“One of my number one rules as an investor is as soon as I find out a manager is going through divorce, redeem immediately. Because the emotional distraction that comes from divorce is so overwhelming, that the idea you can think straight for 60 seconds and be able to make a rationale decision is impossible, particularly when there are kids involved. You can automatically subtract 10 to 20 percent from any manager if he is going through divorce.”

Paul Tudor Jones

“One of my weaknesses is that I always tend to be too optimistic, particularly about the ability of other people to succeed.”

Paul Tudor Jones

“One problem with failure. It can stay with you for a very long time.”

Paul Tudor Jones

“Quite often that dragon of failure is really chasing you off the wrong road and on to the right one.”

Paul Tudor Jones

“Serving others is really, really important. It truly is the secret to happiness in life.”

Paul Tudor Jones

“Some of your greatest successes are going to be the children of failure.”

Paul Tudor Jones

“Some things happen to you that at the time will make you feel like the world is coming to an end, but in actuality, there is a very good reason for it. You just can’t see it and don’t know it.”

Paul Tudor Jones

“Sometimes failure is merely chasing you off the wrong road and onto the right one.”

Paul Tudor Jones

“The accumulation and then the repayment of debt basically drives every economic cycle that there is.”

Paul Tudor Jones

“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?”

Paul Tudor Jones

“The idea that you can’t beat the markets is a frightening prospect. That is why my guiding philosophy is playing great defense.”

Paul Tudor Jones

“The markets have been so good to me that I feel I should give back something in return.”

Paul Tudor Jones

“The most important rule is to play great defense, not great offense. Everyday 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.”

Paul Tudor Jones

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

Paul Tudor Jones

“The single most important things that you can do is diversify your portfolio. Diversification is key, playing defense is key, and, again, just staying in the game for as long as you can.”

Paul Tudor Jones

“The whole world is simply nothing more than a flow chart for capital.”

Paul Tudor Jones

“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.”

Paul Tudor Jones

“There is nothing worse than a bad trading day.”

Paul Tudor Jones

“There's such an emphasis on making money that we've really taken the humanity out of business.”

Paul Tudor Jones

“There’s a time when to hold em and a time when to fold em. You’re not going to necessarily always be in situation to make a lot of money, where the opportunities are great.”

Paul Tudor Jones

“There’s never going to be a time where you can say with certainty that this is the mix I should have for the next five or ten years. The world changes so fast.”

Paul Tudor Jones

“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!”

Paul Tudor Jones

“This skill is not something that they teach in business school.”

Paul Tudor Jones On investing

“Trading gives you an incredibly intense feeling of what life is all about.”

Paul Tudor Jones

“Trading gives you an incredibly intense feeling of what life is all about. Emotionally, you live on the extremes.”

Paul Tudor Jones

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

Paul Tudor Jones

“Treasury Secretary Baker’s weekend statement that the U.S. would no longer support the dollar because of its disagreements with West Germany was the kiss of death for the market.”

Paul Tudor Jones

“We have ripped the humanity out of our companies. It's threatening the very underpinnings of our society.”

Paul Tudor Jones

“We’ve seen cheap companies get cheaper many, many times. If something’s going down, I want to be short it, and if something’s going up, I want to be long it. The sweet spot is when you find something with a compelling valuation that is also just beginning to move up. That’s every investor’s dream.”

Paul Tudor Jones

“When I got into the business, there was so little information on fundamentals, and what little information one could get was largely imperfect. We learned just to go with the chart. Why work when Mr. Market can do it for you?”

Paul Tudor Jones

“When I trade, I don’t just use a price stop, I also use a time stop. If I think a market should break, and it doesn’t, I will often get out even if I’m not losing any money.”

Paul Tudor Jones

“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. The inability to read a tape and spot trends is also why so many in the relative-value space who rely solely on fundamentals have been annihilated in the past decade.”

Paul Tudor Jones

“When one door closes, another will open, but standing in that hallway can be hell. You just have to persevere.”

Paul Tudor Jones

“When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of that expansion.”

Paul Tudor Jones

“Where you want to be is always in control, never wishing, always trading, and always first and foremost protecting your ass. That's why most people lose money as individual investors or traders because they're not focusing on losing money. They need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90 percent of their time on that, not 90 percent of the time on pie-in-the-sky ideas on how much money they're going to make, then they will be incredibly successful investors.”

Paul Tudor Jones

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

Paul Tudor Jones

“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.”

Paul Tudor Jones

“You adapt, evolve, compete or die.”

Paul Tudor Jones

“You always want to be with whatever the predominant trend is.”

Paul Tudor Jones

“You can achieve great economic gains by solving social problems.”

Paul Tudor Jones

“You can not have significance in this life if it is all about you. You get your significance, you find your joy in life through service and sacrifice - it's pure and simple.”

Paul Tudor Jones

“You can open the most beautiful Saks Fifth Avenue in Anchorage, Alaska, with a wonderful summer menswear department, but unless somebody wants to buy the clothes, you will go broke.”

Paul Tudor Jones

“You learn early in life that half of everything you do is wrong.”

Paul Tudor Jones

“You learn more from your losses, than from your gains.”

Paul Tudor Jones

“You’re going to buy things that go to zero and sell things that go to infinity.”

Paul Tudor Jones