In Trading Routine and Psychology

Paul Tudor Jones is the founder of Tudor Investment Corp., the multi-billion dollar firm based in Connecticut, and later the Robin Hood Foundation, a philanthropic organization dedicated to enriching the lives of poverty-stricken New Yorkers.

We were just discussing this video not too long ago and it took me a while to find a working version of it online. I'm not sure where you would even buy a copy of this anywhere.

The page has some kind of preloader so just be patient while it loads. And for those that want to hold onto it, the download helper addon for Firefox should do the trick. Here's the link, enjoy!

P.S. – I also found this interesting blip on his Wikipedia page, as cited from the book Market Wizards*, about his general trading approach at the time of the interview:

  • Contrarian attempt to buy and sell turning points. Keeps trying the single trade idea until he changes his mind, fundamentally. Otherwise, he keeps cutting his position size down. Then he trades the smallest amount when his trading is at its worst.
  • Considers himself as a premier market opportunist. When he develops an idea he pursues it from a very-low-risk standpoint until he has been proven wrong repeatedly, or until he changes his viewpoint.
  • Swing trader, the best money is made at the market turns. Has missed a lot of meat in the middle, but catches a lot of tops and bottoms.
  • Spends his day making himself happy and relaxed. Gets out if a losing position is making him uncomfortable. Nothing’s better than a fresh start. Key is to play great defense, not great offense.
  • Never average losers. Decreases his trading size when he is doing poorly, increase when he is trading well.
  • He has mental stops. If it hits that number, he is out no matter what. He uses not only price stops, but time stops.
  • Monitors the whole portfolio equity (risk) in realtime.
  • He believes prices move first and fundamentals come second.
  • He doesn’t care about mistakes made 3 seconds ago, but what he is going to do from the next moment on.
  • 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.

*^ “Paul Jones II”. Paul Tudor Jones. 2006-03-08. Retrieved 2007-11-17.

ParaCurve is free and has been since 2008. Help us out and rate our content!

Leave a Reply

Start typing and press Enter to search