Paul Tudor Jones
Everything gets destroyed a hundred times faster than it is built up. It takes one day to tear down something that may have taken ten years to build. If the economy starts to go with the kind of leverage that is in it, it will deteriorate so fast that people’s heads will spin. I hate to believe it, but in my gut that is what I think is going to happen.
Paul Tudor Jones
Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your trading volume when you are trading well. Never trade in situations where you don’t have control. For example, I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.
If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you always get back in. There is nothing better than a fresh start.
Don’t be too concerned with 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
First of all, never play macho man with 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
Richard Dennis
It is a little bit like playing golf: You can throw your clubs around after making a bad shot, but while you are making the next shot you should keep your head down and your eye on the ball.
What is the biggest public fallacy about market behavior?
Richard Dennis
That markets are supposed to make sense.
Richard Dennis
Absolutely. I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.
Bruce Kovner
Whenever a trader says, “I wish,” or “I hope,” he is engaging in a destructive way of thinking because it takes attention away from the diagnostic process.
Bruce Kovner
First, I would say that risk management is the most important thing to be understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.
Bruce Kovner
Yes, because there are a lot fewer people paying attention to the cross rates. The general rule is: The less observed, the better the trade.
Bruce Kovner
The Heisenberg principle in physics provides an analogy for markets. If something is closely observed, the odds are it is going to be altered in the process.
