Tuesday, August 30, 2011

The golden rules for investing

Paul Tudor Jones is a legend on Wall Street. You now have the opportunity to know him better and learn his unerring investment rules through getmoneyrich.

What made Paul Tudor Jones special

It was October 19, 1987 when the U.S. stock market collapsed. While most of the assets went up in smoke because of the dramatic collapse the fund managed by Tudor Jones, in the following months gained 62%. But where does this skill and what is the curriculum vitae of this singular young star of the golden temple of American finance? Retrace its history in brief

The man Paul Tudor Jones

He began his career as a broker and immediately demonstrated a great talent, to enable the company he worked to earn more than one million dollars in commissions since its second year of operation. In 1984 he founded the Tudor Futures Fund, through which $ 1,000 invested in that year became only 17,482 four years later.

I know you’re asking the secret of these results. Before you leave take the enthusiasm, let me tell you some things. First, the fund in question is no longer operating, because since 1987, in conformity with its statute, has been dismantled and shareholders, have been repaid. Second, it was a risky fund, which as the name says, it operated on futures are derivatives very dangerous. Third, the real secret of Tudor Jones was the application of a disciplined investment approach, How can you find yourself in reading Three Secrets to invest in an intelligent way.

In particular, the legendary manager thought more to potential losses than to potential gains. His habit was to set a stop loss of 10% for every transaction that took place and to respect scrupulously. Without these necessary conditions, we are ready to learn the rules, simple but effective, they need to succeed from an investment in the stock market.

The Seven Habits of Paul Tudor Jones

* not mediate ever the prices. If you’re at a loss because it is a mistake. Needless to mistake the mistake and take more risks
* if things do not go your way, decrease the operational. It ‘better to switch off and still leave money in a deposit account, rather than just want you to redo and at any cost
* If you suspect that the situation is beyond your control, do not operate
* always fixed the stop loss and respect them. Avoid the losses become too large and unmanageable then
* Do not worry about the price at which you buy, but rather be sure that it is in place a strong uptrend on the title or index you buy
* Always put yourself in the wrong. If you lose you that you were wrong, the market is always right. Sell ​​and cuts losses
* not be a hero. Do not exceed safe. Forget about your ego

What rules will you follow?

Write a comment for telling me and other readers what are your rules on the basis of which it invests. Use the stop loss? Do you have a strategy? Or pursuit of fashion and investment advice that your bank offers?

With your help I am sure that will be born an interesting discussion. And if you realize you do not have a method, you are now convinced of the importance of adopting one.

Dedicated to your financial success
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