Paul Tudor Jones is a great investor and here are his 12 words of wisdom that he has said.
Let’s see how it applies to my investing style.
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**I try to do this but it is hard. It hurts my pride I guess. I do think that I may be wrong a lot of times. I need to kill my pride and be more humble.
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**Of course, losers don’t get you anywhere. Make sure to do due diligence and cut losses quickly.
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**So true in the market. Investor don’t adapt. Well, be ready to give your money to a smarter investor.
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**Yes, I am always humbled by the market. There is always something unexpected and that is why I like it.
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**Not really, that flow of capital creates value.
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**Yes, never lose money. Remember to never lose money. Warren Buffet and Howard Marks’ mantra.
- “Always think of your entry point as last night’s close.” **Yup, don’t be attached to stocks. I have been attached and it blew a hole in my portfolio.
- “I will keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst.” **This is so true. Need to control risk. Cut losses.
- “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.” **Pride kills. God loves humble hearts 😀
- “Markets trend only about 15 percent of the time; the rest of the time they move sideways. **Not sure about the statistics but big things happen suddenly and quickly. Other times, it is mostly noise.