Play great defense, not great offense
“The most important rule of trading is to play great defense, not great offense.” Paul Tudor Jones
Situational Awareness, one of the most followed AI funds in the world, was up 439%+ net through June, per its own investor letter. Now it was forced to sell the bulk of its book in one trade. The picks were public. The leverage never was. Citadel took the other side.
Bottoms make you want to sell. The first rip makes you want to chase. Neither is confirmation.
Defense first. Know what you own. Know why you own it. Follow fewer people. Protect the capital first. The upside finds the survivors.
