21-Trading Rules From Paul Tudor Jones

Hedge fund manager Paul Tudor Jones II is known for his macro trades, particularly his bets on interest rates and currencies. In 1980, he founded Tudor Investment Corporation, which now manages an estimated $11 billion in assets. Jones got his start at his dad’s small business paper, the Memphis Daily News, where he wrote under the name Paul Eagle in high school and college.

He cut his teeth trading cotton futures at the New York Cotton Exchange, under the tutelage of renowned cotton trader Eli Tullis. In 1988, he co-founded the Robin Hood Foundation, with the goal of reducing poverty in New York City.

PTJ is a legendary trader because he’s great at playing defense and neurotic about protecting his capital. He never pigeonholed himself into a single trading approach but instead uses a multitude of tools; adopting what works and tossing what doesn’t. Through years of studying the tape, he developed an instinctual feel for price action which allows him to spot turning points in markets and be aggressive at inflection points…

And above all else, even after obviously becoming one of the greatest, he’s still maintained a deep sense of humility in approaching markets which have allowed him to remain mentally flexible and robust…

He achieved this by mastering risk management and consistently chopping off…