Paul Tudor Jones Trading Rules
- Thread starter JamesL
- Start date
I always liked & admired Tudor.
My new desktop computer wallpaper. 
A little late to the party, I'd say:
http://www.elitetrader.com/et/index.php?threads/some-notable-quotes-by-paul-tudor-jones.292622/
http://www.elitetrader.com/et/index.php?threads/some-notable-quotes-by-paul-tudor-jones.292622/
This is what separates the great traders from the ones that fail. This is why he has been in the trading game for what seems like forever. Great post.
Do list # 5 is in my opinion huge. For me decreasing size when things aren't working saved my ass many times. When I first started trading I would go through draw downs and not reduce size. Obviously either I was not trading well/making mistakes or the market environment wasn't good for my strategy. Either way to continue trading the same size was just making the hole deeper. It's just stupid. I still have trader friends to this day who continue to throw around big size even when they are getting killed. They usually say "How the hell am I going to make it back trading smaller ?" Brilliant thinking. No way that 200k hole is going to 400k......nope.....no chance.
At the same time when things are going well you have to step on the gas and size up a bit. For me it's all based on my P/L in each market. I keep it real straightforwards. If I'm making money in Wheat Futures I increase the size by a certain %. At the same time if I am getting clipped in Crude futures I cut back. I let the markets tell me where to trade bigger. Keep it simple.
I could write a whole boatload of things on "Don't trade in front of key reports". Worked for a firm that had a strategy basically built on that. Learned a lot about what not to do....
Do list # 5 is in my opinion huge. For me decreasing size when things aren't working saved my ass many times. When I first started trading I would go through draw downs and not reduce size. Obviously either I was not trading well/making mistakes or the market environment wasn't good for my strategy. Either way to continue trading the same size was just making the hole deeper. It's just stupid. I still have trader friends to this day who continue to throw around big size even when they are getting killed. They usually say "How the hell am I going to make it back trading smaller ?" Brilliant thinking. No way that 200k hole is going to 400k......nope.....no chance.
At the same time when things are going well you have to step on the gas and size up a bit. For me it's all based on my P/L in each market. I keep it real straightforwards. If I'm making money in Wheat Futures I increase the size by a certain %. At the same time if I am getting clipped in Crude futures I cut back. I let the markets tell me where to trade bigger. Keep it simple.
I could write a whole boatload of things on "Don't trade in front of key reports". Worked for a firm that had a strategy basically built on that. Learned a lot about what not to do....
A little late to the party, I'd say:
http://www.elitetrader.com/et/index.php?threads/some-notable-quotes-by-paul-tudor-jones.292622/
Sorry man. Did not see you had posted this already. Thanks though. Can actually have a lot of decent posting in here about what he talks about.
Very true.
He said he uses Elliott Wave to trade? Does anyone really believe it? I guess he just uses that to explain the trade he made based on insider news, you know Elliott Wave can be uses to explain anything because you can exaplain anyway you want.
You can also construct evidence after the fact, as you are suggesting, with your own unique interpretation of fundamentals, depending on which variables you choose to highlight or weigh more heavily. Or carefully chosen statistics. Or virtually any form of TA, depending on time frame and context. So you see, you can make the same baseless allegation about anyone, for any reason. And so, what exactly is your point?
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If he really usesElliott Wave to trade, I think there is no way he is a great trader.
If he uses Elliott Wave to hide how he uses something to know ahead, that is not great trader.