Paul Tudor Jones Quotes

It is foolhardy to make a second trade, if your first trade shows you a loss. Never average losses. Let this thought be written indelibly upon your mind.

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.

When you trade sometimes you lose.

And then at the end of the day, the most important thing is how good are you at risk control. Ninety-percent of any great trader is going to be the risk control.

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.

Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I'm getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis... I never think about [stop vulnerability], because the point about a technical barrier - and I've studied the technical aspects of the market for a long time - is that the market shouldn't go there if you are right.

The key thing when you short is to make sure you're not wrong on the fundamental intrinsic value.

Basically, what I do is place a stop, generally 10 to 20 percent below the current price, whenever I buy a stock. The exact level depends on my own analysis of a stock's trading pattern. If a stock violates this stop, I'm out.

It doesn't matter whether the market is up or down. All the day traders want is volatility.

The problem with most people who play the market is that they are not flexible.

I bet on a lot of stuff that's low-priced, and most of it's going to go back down to zero. But some of it's going to go up.

The stock market is a giant distraction from the business of investing.

Buy when there's blood in the streets, even if the blood is your own.

The only gambling tip which amounts to anything is to keep out of the game.

To make money in the markets, you have to think independently and be humble.

One of the most helpful things that anybody can learn is to give up trying to catch the last eighth - or the first. These two are the most expensive eighths in the world. They have cost stock traders, in the aggregate, enough millions of dollars to build a concrete highway across the continent.

It's fun to play around... it's human nature to try to select the right horse... But for the average person, I'm more of an indexer... The predictability is so high... For 10, 15, 20 years you'll be in the 85th percentile of performance. Why would you screw it up?

One of the most helpful things that any body can learn is to give up trying to catch the last eighth - or the first. These two are the most expensive eighths in the world.

Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.

When I bet on horses, I never lose. Why? I bet on all the horses.

Investment banking has, in recent years, resembled a casino, and the massive scale of gambling losses has dragged down traditional activities as banks try to rebuild their balance sheets.

My experience with novice traders is that they trade three to five times too big. They are taking 5 to 10 percent risks on a trade when they should be taking 1 to 2 percent risks. The emotional burden of trading is substantial; on any given day, I could lose millions of dollars. If you personalize these losses, you can’t trade.

There is something in people; you might even call it a little bit of a gambling instinct… I tell people investing should be dull. It shouldn't be exciting. Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.

There's a game out there, and the stakes are high. And the guy who runs it figures the averages all day long and all night long. Once in a while he lets you steal a pot. But if you stay in the game long enough, you've got to lose. And once you've lost there's no way back, no way at all.

A lot of our respected financial institutions are just casinos in drag.