I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.
Interpretation
Success can be achieved by taking risks at market fluctuations rather than just following trends.
In this quote, Paul Tudor Jones emphasizes the potential for significant financial gain by identifying and acting upon market extremes, such as peaks and troughs, rather than simply riding the trends. He challenges the common advice against trying to 'pick tops and bottoms' by sharing his own success in doing exactly that, suggesting that there is value in contrarian thinking and that substantial opportunities exist for those willing to navigate the volatility.
In practice
This quote can be used in a financial seminar to illustrate unconventional trading strategies.
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.
As I've told my three daughters, all of whom I've at one time encouraged to go into macro trading, any man or woman can do anything to which they set their heart and mind.
I'm always thinking about losing money as opposed to making money. Don't focus on making money, focus on protecting what you have
You can not have significance in this life if it is all about you. You get your significance, you find your joy in life through service and sacrifice - it's pure and simple.
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.
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?
The winner asks, "May I help?" The loser asks, "Do you expect me to do that?"
A champion is suppose to hate to lose, and it wasn't like I was ever crazy about the idea. But I learned to deal with losing without having my spirit or confidence broken, which would help immensely over time, not just in the big picture but even in specific matches when I found myself in a jam. Fear of losing is a terrible thing.
If you try to make such projects, unseen by others, as perfect as any human could, you'll develop skills that other professionals don't have.
It's what you practice in private that you will be rewarded for in public.
I started playing chess when I was five years old. I learned the moves from my mother, then worked with my father - and later trainers. My style became very technical. I sacrificed a lot of things. I was always hunting for the king, for the mate. I'd forget about my other pieces.
I could never have ridden 4,000 winners without loving my job, and If I ever get to the point where I'm not loving it, I'll stop.
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