I forgot who sent me this. It’s been sitting on my desktop, waiting for me to post it to the site. I really like it. It’s apparently some of the rules / philosophies of Paul Tudor Jones, the famous swing trader and hedge fund manager.
I really like the second one. I really set boundaries on my emotional energy. Have a read through it. There are many gems in this deceivingly simple list. I am sure some will resonate with you.
Paul Tudor Jones – Swing Trader Rules
- 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 of a losing position that is making him uncomfortable. Nothing’s better than a fresh start. Key is to play great defense, not great offense.
- Never average loses. 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 real time.
- He believes prices move first and fundamentals come second.
- He doesn’t care about mistakes made three 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.