I didn't read his 10 rules, only what you printed.
Like I said having a price where you take profits can be explained by having a criteria of where you sell, not a specific price.
I'd hate to put words in PTJs mouth.
The 10 Rules Of Tudor Jones
- Thread starter Scataphagos
- Start date
Like I said having a price where you take profits can be explained by having a criteria of where you sell, not a specific price.
I'd hate to put words in PTJs mouth.
"Having criteria for when to sell"... of course it will occur at "some" price... everything occurs at some price.... is not the same as having a "price in mind where I'd take profits" which is the definition of "target". "Having a price/target in mind" for the trade is contradictory to "letting your profits run". Think of all the money Bitcoin or Tesla investors left on the table because their prices hit the investors' "target".) The market will give us every opportunity to turn a potentially large gain into a small one... targets have a lot to do with that.
(Some ETers here seem to want to "dance around the notion" of this.. is that because it's PTJ, "The God".... and nobody wants to disagree with anything he says?)
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I don't "set targets"..... never have.
It's difficult to "let profits run and score a big winner" as you constantly have to deal with "counters". That said, there are 2 "places on the chart" where it's most logical to sell. #1, "sell aggressively into exhaustion high" as best you might determine, and #2, "sell defensively" where the market has broken down sufficiently that you think it's unwise to continue on the risk.
Targets have nothing to do with either.
I recall reading about some guy who was happy to sell his BTC for $800... after having paid $400 for it.
And another recently on ET... some trader posted how proud he was to have "captured 10 ES points"... maybe that was his 1st 10 point winner?... but it was a 200 point day. (If I made 10 on a 200 point day, I'd be keeping quiet just out of embarrassment.)
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We seem to trade with a similar system. I need a reason to exit a trade, not a target. I buy stocks because they are going up so why sell if they continue to do that. The more a stock increases in value and the longer I hold it the exit get further away from the price.
My number one rule to protect my capital is not to hold any losing stocks in the portfolio.
Sounds to me like you've got the right approach.
Speaking of "not holding losing stocks"... I saw a story once where some high-up guy in a brokerage was telling about his trading team. They had a rule that in their Monday morning meetings, everybody holding a losing position had to justify the reason why to the rest of the group. That cause traders to exit almost all losers on Friday. The guy said, "saved us $Millions".
I've always maintained that the decision to hold a stock is the same as the decision to buy a stock. Why would you hold a stock that you wouldn't buy.They had a rule that in their Monday morning meetings, everybody holding a losing position had to justify the reason why to the rest of the group. That cause traders to exit almost all losers on Friday. They guy said, "saved us $Millions".
You are hung up on a minor detail.. Before he puts on a trade,he looks at the risk reward and only puts on a trade if the reward far exceeds the risk. Hes not a hard core trend follower,hes a discretionary trader.If the market proves him right,he does not automatically blow out of the position at his initial "target"..If you are making macro bets,you need to have some framework to work from.That is all he is doing..
The guy is worth 5 bil...Ill ride with him
Quote from PTJ
The guy is worth 5 bil...Ill ride with him
Quote from PTJ
- “I look for opportunities with tremendously skewed reward-risk opportunities. You should always be able to find something where you can skew the reward risk relationship so greatly in your favor, that you can take a variety of small investments with great reward risk opportunities, that gives you minimum draw down pain, and maximum upside opportunities.“
- “If I have positions going against me, I get out; if they are going for me, I keep them.”
Of course you will.
All I said was that he made a "contradictory statement"... and a whole bunch of ETers rush to defend that it was NOT contradictory.... even though it is. Sheesh!
And just which of his contradictory "worth $5 Bill" statements are you siding with?