Paul Tudor Jones Quotes Page 3

“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.”

“I was interested in becoming a trader straightaway.”

“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.”

“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.”

“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.”

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

“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.”

“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.”

“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.”

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

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

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

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

“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.”

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

“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.”

“Intellectual capital will always trump financial capital.”

“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.”

“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.”

“Judge not, least you be judged.”

“Losers average losers.”

“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.”

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

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

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

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

“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.”

“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.”

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

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