Market Wizards: Compare and Contrast
By Madison Nef
I read two interviews… one interview from Richard Dennis and
another from Paul Tudor Jones. I immediately noticed some large differences
between the two… But I’d first like to sum up each one on their own. Both are
very successful traders in the market, at one point or another… and they both
have their own style.
Richard Dennis
Richard Dennis, while he is a multimillionaire, does not fit
the typical stereotypes you would place on a millionaire. He leads a basic,
common and low-maintenance life with common standards… No excessive mansion or
10 different cars. He is more often seen donating to charities… he founded the
Roosevelt Center for American Policy Studies. His political views tended to be
more towards the liberal side… not something commonly associated with
millionaires. However, through his lifetime he has been involved in a wide
spread of liberal activity and is a great sponsor for liberals.
Dennis believed that keeping a level head was one of the
best things you could do while trading. In the stock market, there can be some
hectic times if a trade goes afoul or if a certain thing you thought might
happen doesn’t… it can be a multi-million dollar loss, depending on your
position and how much you have put into a stock. Dennis had a very calm
attitude towards whatever happened… he could keep a level head no matter what
the situation. Since knowing how to keep calm during a crisis to avoid stress
and headaches is a large part of being a trader, it is something that helped
him succeed tremendously.
“Do you really take
losses as great as 50% calmly? Isn’t there an emotional side to it?” “I try for
there not to be. It is totally counterproductive to get wrapped up in the
results. Trading decisions should be made as unemotionally as possible… You
have to maintain your perspective. There is more to life than trading. Also, to
me, being emotionally deflated would mean lacking confidence in what I am
doing. I avoid that because I have always felt that it is misleading to focus
on short-term results.” – Richard Dennis
Paul Tudor Jones
Paul Tudor Jones is like the polar opposite of Richard
Dennis. He is a multi-millionaire as well… but flaunts it, exploiting his money
buying large houses, many nice cars and dining at luxurious restaurants. His
attitude is anything but calm when trading, and he rules over his employees
with an iron fist in order to get trades done correctly. However, it is stated
in the book that during the interview and in person he holds together well,
keeping a casual and light tone going even though his trades were going against
him. He atones this trait to one of his first tutors in the market, the
legendary cotton trader Eli Tullis.
Jones learned from the beginning to trust his instincts and
one of the best pieces of advice that he offered is that if you were caught in
a position or a trade that you felt uncomfortable in, you could just leave…
there is always time to get back in to the trade and it’s better than losing a
lot of money because you didn’t listen to your intuition.
“If you have a losing
position that is making you uncomfortable, the solution is very simple: Get
out, because you can always get back in. There is nothing better than a fresh
start.” – Paul Tudor Jones
In conclusion… both of these men are trading geniuses who
both made incredible amounts of money trading commodities. They had different
personalities, different outlooks on the market and different techniques… but I
think you could take tips from either of them and be better off for it.
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