Did Paul Tudor Jones have near blowup experience?

Discussion in 'Trading' started by a529612, Nov 12, 2007.

  1. What happened here?

    "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?"
  2. That sounds like something from his Market Wizards interview. He was "long & wrong" a lot of cotton.
  3. This happened ages ago.
    It was in his market wizards interview in 1988.
  4. I love that quote.... very powerful.
  5. zdreg


    1st you have to find a definition of happiness. 2nd the definition of happiness is a moving target.
    i don't believe that avoidance of pain is the goal. it is getting where you want to go and solving the problems along the way that makes the difference.

    i guess you can figure out what i think of that quote.
  6. Mr. Jones placed a big bet then price values changed in the losing direction. When Mr. Jones attempted to stop the loss he discovered that he was selling into a declining market. It is possible that Mr. Jones' own selling was causing prices to decrease further. The market went limit down in 60 seconds and Mr. Jones was not able to sell his entire position. The following opening prices gapped lower, continued decreasing and stopped at limit down. Mr. Jones continued selling perhaps the next session. Mr. Jones experienced a very large loss.

    About this time Mr. Jones relates that he recognized the value in taking smaller positions and not risking everything on one trade.

    I find the following paragraph in the Market Wizards interview revealing:

    "Now I spend my day trying to make myself as happy and relaxed as I can be. If I have positions going against me, I get right out. If they are going for me, I keep them."

    What trading method is described by the last two sentences?

    Now you know.