Paul Tudor Jones
Jones est l'un des Market Wizards interviewés par Schwager dans son premier tome. Son style est à contre-tendance et court terme.
The most important rule of trading is to play great defense, not great offense. Every day 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 possible 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.Quelques extraits de son interview :
- Tullis taught me about moving volume. When you are trading size, you have to get out when the market lets you out, not when you want to get out... If you want to move a large position, you don't wait until the market is in new high or low ground because very little volume may trade there if it is a turning point.
- I will always liquidate half my position below new highs or lows and the remaining half beyond that point...so that I won't have to worry about getting out of the entire position at the point where stops are being hit.
- I decided that I was going to become very disciplined and business like about my trading.
- I spend my day trying to make myself as happy and relaxed as I can be. If I have positions going against me, I get right out; if they are going for me, I keep them.
- I am always thinking about losing money as opposed to making money.
- I have a mental stop. If it hits that number, I am out no matter what.
- I don't break it down trade by trade. I look at it in terms of what my equity is each morning. My goal is to finish each day with more than I started.
- Risk control is the most important thing in trading. For example...I want to make sure that I never have a double-digit loss in any month.
- When I am trading poorly, I keep reducing my position size.
- I am more scared now than I was at any point since I began trading. I know that to be successful, I have to be frightened. My biggest hits have always comeafter I have had a great period and I started to think I knew something.
- I have very strong views of the long-run direction of all markets. I also have a very short-term horizon for pain. As a result, frequently, I may try repeated trades from the long side over a period of weeks in a market which continues to move lower.
- I consider myself a market opportunist. That means I develop an idea on the market and pursue it from a very -low-risk standpoint until I have repeatdly been proven wrong, or until I change my viewpoint.
- I have always been a swing trader, meaning that I believe the very best money is to be made at the market turns...I have often been missing the meat in the middle, but I have caught a lot of bottoms and tops.
- I talk to traders in virtually every major market on an almost daily basis. Who wants to fade a winner ? I want to be with them because I make a point of talking to the people who have the best track records.
- The first thing I do is put my ear to the railroad tracks. I always believe that prices move first and fundamentals come second.
- One of the thing that Tullis taught me was the importance of time. When I trade, I don't just use a price stop, I also use a time stop. If I think a market should break, and it doesn't, I will often get out even if I am not losing any money.
- I never thought it takes talent to be a good trader before, but I am starting to believe that now.
- There is nothing worse than a bad trading day. You feel so low that it is difficult to hold your head up... Trading gives you an incredibly intense feeling of what life is all about. Emotionally, you live on the extremes.
One of my strengths is that I view anything that has happened up to the present point in time as history. I really don't care about the mistake I made three seconds ago in the market. What I care about is what I am going to do from the next moment on. I try to avoid any emotional attachment to the market. I avoid letting my trading opinions be influenced by comments I may have made on the record about the market.Ses conseils aux débutants :
- 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 (key reports...)
- If you have a losing position that is making you uncomfortable...get out, because you can always get back in. There is nothing better than a fresh start.
- Don't be too concerned about where you got into a position... Always think of your entry point as last night's close... Who cares where I am long from. That has no relevance to whether the market environment is bullish or bearish right now, or to the risk/reward balance of a long position at that moment.
- Don't be a hero. Don't have an ego. Always question yourself and your ability. Don't ever feel that you are very good. The second you do, you are dead... Always maintain your sense of confidence, but keep it in check.