Paul Tudor Jones’ 22 Trading Principles
- It is possible to see that a market is dramatically overbought and
prepare for, and then capture, huge gains after the sell off.
- Risk small amounts to make big profits.
- Bet against times when numerous leaders must agree.
- Long hours and a strong work ethic are keys to being a successful
trader.
- While it is good to trade any market that will turn a profit,
specializing in a market can lead to great success.
- The markets go down faster than they go up.
- If the market will not go down during bad news, it will likely go
higher.
- The stock market moves in patterns and in cycles. Past price patterns
repeat themselves due to human emotions.
- Many times traders think a big position order size means that a whale
knows something, most times they do not.
- It is okay to skip a trade if you can’t get your entry price.
- A momentum move does not just stop, it takes time to roll over.
- It is possible to trade successfully by gaming the actions of other
traders.
- Be aggressive at high probability moments.
- Always stay in control of your trading and manage risk.
- Focus on risk management as the #1 priority in trading.
- Having the right mindset during a big loss that it is just temporary,
is the key to coming back and being successful.
- Letting profits run is sometimes a great plan.
- Being long at all time highs in the indexes is a great strategy.
- Great money managers trade with passion.
- Even Market Wizards have doubts about winning when entering a
trade.
- When the top in a market is reached, there is a lot of money to
be made shorting as panic selling sets in.
- Guys from Tennessee can trade!
