#1
Defense First
"Dont focus on making money; focus on protecting what you have. Playing great defense means youll be around to play offense."
Defense first: protect capital before seeking profits.
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Paul Tudor Jones🛡 Risk Management
Paul Tudor Jones's Risk Management Rules
Paul Tudor Jones II (born September 28, 1954) is an American billionaire hedge fund manager and philanthropist. He founded Tudor Investment Corp in 1980, which has grown into one of the world's leading macro hedge funds managing over $11 billion in assets. Jones is best known for predicting and profiting from the 1987 stock market crash, reportedly tripling his money...
3 principles·Risk Management
3 Key Risk Management Principles
#2
Cut Losses Quickly
"The most important rule is to play great defense. Im always thinking about losing money, not making money. Cut losses fast."
Great defense means cutting losses fast and decisively.
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Position Sizing
"Never risk more than a small percentage of your capital on any single trade. Proper position sizing ensures no single loss can destroy you."
Risk only small percentage per trade to survive drawdowns.
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What are Paul Tudor Jones's key risk management principles?
Paul Tudor Jones has 3 key principles on risk management. The most important one is "Defense First" — Dont focus on making money; focus on protecting what you have.
How does Paul Tudor Jones apply risk management in practice?
Paul Tudor Jones applies risk management through several key principles including "Defense First" and "Cut Losses Quickly". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Paul Tudor Jones's approach to risk management unique?
Paul Tudor Jones's approach to risk management is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Paul Tudor Jones provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
