1) This year has been difficult for many investors, whether you are a novice or an experienced risk taker.
It would be useful to revisit today's money masters and see how they dealt with gut-wrenching loss.
It always helps renew my ambition. THREAD 👇
2) Paul Tudor Jones lost $10,000 when he was 22, and when he was 25 he lost about $50,000, which was all he had to his name.
3) In 1979, PTJ's fourth year in the business, he lost over 60% of the equity in his clients’ accounts on a single cotton trade that went horribly wrong.
“I am not cut out for this business," he said. "I don’t think I can hack it much longer.”
4) Relating the episode to Jack Schwager in Market Wizards, he revealed:
"It was a cathartic experience for me, in the sense that I went to the edge, questioned my very ability as a trader, and decided that I was not going to quit. I was determined to come back and fight."
5) That was when he first decided that he had to learn discipline and money management.
As Richard Dennis used to say to new traders, “When you start, you ought to be as bad a trader as you are ever going to be.”