Where You Want To Be : PTJ Theory to Trading

Using proper buy points confirmed with price and surging volume is the only way to be when buying stocks long. However, when buy points fail and are then confirmed with selling volume; stops are deployed instantly. The absolute greatest traders understand that, and that is why they consistently win overtime. Paul Tudor Jones II is one of those great traders, and a native Memphian as well. His elusive Trader video has been watched by myself more than is required. It's a very inspiring video for a guy like me that has to take the same decisive actions and do them quickly on a daily basis. Inter personally it resonates with me even more because his age in the video is my current age. There should be no analog to that I don't think! (Inside joke if you've seen Trader.) Anyway, I've plucked the pearls of wisdom and put them into my notes as the PTJ Theory. And here it is :

Where You Want To Be:

1. Always in Control



2. Never Wishing



3. Always Trading



4. And always, first and foremost, protecting your ass!

Focus on the money/capital. It's always at risk in any single investment. 90% of your time spent on that is key. As was said in his Market Wizards interview, "Don't focus on making money; focus on protecting what you have."

Also, it's gotta hurt when you lose. If it doesn't there's a disconnect between you and the capital. And likewise one must have a quiet confidence about themselves when winning. The only reassurance that is ever needed lies within our P&L line. Thinking about that and all your positions relative to the previous session's close forces you to stay in the NOW. In turn this keeps you in control. Staying humble and very focused on current price action/ chart patterns with the appropriate buy (buy stop)/sell (sell stop) rules in place can only lead one closer to market success.

Quotes from the movie : "Quote me, quote me, quote me!!! What's the market!??! Second to that is, "And tell him do not $&%* around I want to buy 'em! 85-90? Offer 90 for 3000 FILL or KILL!!!" There's also a turkey that thinks he's a dog. That in and of itself is classic. However, one can't forget about the mystical powers of the charity auction purchased Bruce Willis white high top Reebok's; that are good for generating a market bounce of 30 dow points! When worn properly of course!

Fill or Kill!!!