Bloomberg just reported that Tudor Investment Corp., the hedge fund started by legendary Paul Tudor Jones in 1980 is laying off 15% of its workforce, amid lackluster performance and client withdrawals.
But if with all I had I still lost, what chance does the green outsider have of winning, or, rather, of cashing in? – Jesse Livermore
So what do we have here? Paul Tudor Jones, featured in Market Wizards (after a five year streak of triple digit returns), who’s been trading since the late 1970s and managed to build a multi-billion dollar hedgefund, has been having problems making money for the past few years.
If you go on social media though, or if you visit trading related websites and forums, you’d be hard pressed to find people who are losing. On the contrary, they make money and many of them are more than willing to share their secrets with you, via courses, DVDs, indicators and so on.
One wonders why, if they’re as good as their Excel tables, photos and testimonials say they are, don’t they help struggling hedgefunders like Paul Tudor Jones? Can you imagine how much they would stand to gain, monetarily and PR-wise?
There’s only one answer: because they’re full of shit. All the smoke and mirrors they’ve created about their experience and performance wouldn’t stand a minimal due diligence process. That’s why they remain in their make-believe world where you can become a successful trader (conveyed meaning: you make money every week) after buying a $300 course.
The real world of trading is much more complex and difficult though. That’s why I’ve been stressing here time and again, look for and learn from actual traders if you want to stand a chance of succeeding in this business.