Lessons From The Modern Day Robin Hood (IM 922)

“The secret of all victories lies in organizing the non-obvious.”

Marcus Aurelius

Paul Tudor Jones, American billionaire hedge fund manager, the founder of Hedge fund, Tudor Investment Corporation, is known for building his fortune by making smart decisions.

In the year 1987, when the US market went down by 22% in a single day ( Largest single day crash in American History), he madeĀ  a return of 60% that month and 200% return that year. This legendary investor has an extraordinary resume with 28 consecutive wins ( 28 years without the losses).

His trading strategies is based on technical analysis, with a lot of emphasis on momentum indicators. Some of his investment advice are listed below:

  1. Defense isĀ  ten times more important that offense.
  2. Risk control should be number one important focus.
  3. Diversify, defend and stay in the game.
  4. Always be with whatever the predominant trend is. ( 200-day Moving average strategy).
  5. Five-to-One risk/reward strategy. Risk $1 to make $5.

This lessons from modern day Robin Hood is worth applying in portfolio.

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