Paul Tudor Jones Quotes About Risk
-
That cotton trade was almost the deal breaker for me. It was at that point that I said, “Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?
→ -
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.
→ -
Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your 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.
→ -
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.
→ -
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.
→
Related Authors
-
Bill Ackman Hedge fund manager -
Geoffrey Canada Social activist -
Steven A. Cohen Manager -
Edward Lampert Businessman -
David Einhorn Hedge fund manager -
Louis Bacon Manager -
Julian Robertson Manager -
Jesse Lauriston Livermore Stock trader -
Kenneth C. Griffin Manager -
Daniel S. Loeb Manager -
Carl Icahn Businessman -
Bruce Kovner Businessman -
Richard Dennis Commodities speculator -
David Tepper Manager -
George Soros Business magnate -
Ed Seykota Trader -
-
Jack D. Schwager Author -
Ray Dalio Businessman -
John Paulson Manager