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?
I have met many entrepreneurs who have the passion and even the work ethic to succeed - but who are so obsessed with an idea that they don't see its obvious flaws. Think about that. If you can't even acknowledge your failures, how can you cut the rope and move on?
When I go out and race, I'm not trying to beat opponents, I'm trying to beat what I have done ... to beat myself, basically. People find that hard to believe because we've had such a bias to always strive to win things. If you win something and you haven't put everything into it, you haven't actually achieved anything at all. When you've had to work hard for something and you've got the best you can out of yourself on that given day, that's where you get satisfaction from.
I learned at a young age to dribble with both hands, and that allows me to be more creative when I go against bigger and stronger opponents.
Successful people ask for the criticism of others and consider its merit.
A man to carry on a successful business must have imagination. He must see things as in a vision, a dream of the whole thing.
Anyone who wants to be an entrepreneur like someone else is actually looking in the wrong direction. You don't look out for inspiration, you look in. You have to ask yourself how can I be better today, at solving the problem I am trying to solve for my company. I wouldn't encourage anyone to be like me. Just be like you.
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