Learning From Paul Tudor Jones

Paul Tudor JonesDo watch this PBS documentary before its pulled down yet again. Link.Its certainly now worth the 100s of dollars people pay for old VHP copies of on e-bay.

My personal takeaways.

1.Take care to take money off the table periodically. Making back capital requires time, which is not renewable.

2.There is a certain inertia in stock markets. Even the realization of an eminent crash, doesn’t mean an immediate fall in prices. So contrarian bets at this stage make money.

3.Global capital spreads from asset class to asset class. Anticipating movements and manoeuvring oneself to take advantage of them could increase the rate of returns.

4.Takes an A-Type to be a trader. Certain sorts of things that stress B Types, are what A-Types live for.

Do Not Lose

wealthymatters“I care deeply about making money. I want to know I’m not losing it…. The most important thing for me is that defence is ten times more important than offense… You have to be very focused on the downside at all times.” – Paul Tudor Jones

If you lose 50%, it takes 100% to get back to where you started- and that takes something you can never get back: time.

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