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Paul Tudor Jones: irrationality reigns supreme
By Rob | August 7, 2008
This chart below shows why 300+ points rally in the Dow Jones happens mostly in bear markets.
In addition I did more reading on the best traders. Get to this store and check out some materials on traders Toby Crabel, Ed Seykota or Linda Raschke’s . This is where they are sold the cheapest here.
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Paul Tudor Jones is one the best traders/managers in the world. His views are resonating with many people in that business:
“I see the younger generation hampered by the need to understand and rationalize why something should go up or down. Usually, by the time that becomes self-evident, the move is already over. When I got into the business, there was so little information on fundamentals, and what little information one could get was largely imperfect. We learned to go with the chart. Why work when Mr. Market can do it for you? These days there are many more deep intellectuals in the business, and that, coupled with the explosion of information on the Internet, creates the illusion that there is an explanation for everything…..There are young men and women, graduating from college who have a tremendous work ethic, but they get lost trying to understand a whole variety of market moves….[at the end of a bull market or bear market] there’s typically no logic to it; irrationality reigns supreme, and no class can teach you what to do during that brief, volatile, reign.”
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Topics: Top 10 Best money managers |
August 17th, 2008 at 1:52 am
I just read Nick Darvos’ classic. This quote seems like it comes straight from his book. Not to mention livermore.