𝐏𝐚𝐮𝐥 𝐓𝐮𝐝𝐨𝐫 𝐉𝐨𝐧𝐞𝐬 (𝐏𝐓𝐉) 𝐢𝐬 𝐨𝐧𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐥𝐞𝐠𝐞𝐧𝐝𝐚𝐫𝐲 𝐭𝐫𝐚𝐝𝐞𝐫𝐬 𝐢𝐧 𝐡𝐢𝐬𝐭𝐨𝐫𝐲. From shorting the 1987 crash to building a billion-dollar empire, his strategies & mindset made him a Wall Street icon. Here’s a deep dive into how he made millions and what traders can learn from him! 👇 (MEGA Thread) 🧵 𝟏) 𝐖𝐡𝐨 𝐢𝐬 𝐏𝐚𝐮𝐥 𝐓𝐮𝐝𝐨𝐫 𝐉𝐨𝐧𝐞𝐬? • Born in 1954, Jones started as a cotton futures trader. • Founded Tudor Investment Corp in 1980 with a focus on global macro trading. • Became a billionaire by spotting market trends & predicting major crashes. • His most famous moment? Black Monday 1987, where he made 125%+ returns while the market crashed! 𝟑) 𝐇𝐨𝐰 𝐝𝐢𝐝 𝐡𝐞 𝐩𝐫𝐞𝐝𝐢𝐜𝐭 𝐢𝐭? 📌 𝗘𝗹𝗹𝗶𝗼𝘁𝘁 𝗪𝗮𝘃𝗲 𝗧𝗵𝗲𝗼𝗿𝘆 – He noticed the market was following a repeating historical pattern. 📌 𝗢𝘃𝗲𝗿𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗦𝗶𝗴𝗻𝗮𝗹𝘀 – P/E ratios were too high, similar to past crashes. 📌 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝗲𝗻𝘁𝗶𝗺𝗲𝗻𝘁 – He saw extreme greed, signaling a collapse was near. 🎯 𝗛𝗶𝘀 𝘁𝗿𝗮𝗱𝗲 : Shorted stock index futures aggressively → Made 125%+ gains in 1987 alone! That’s turning $10M into $22.5M in a year! 💰 𝟒) 𝐏𝐓𝐉’𝐬 𝐓𝐫𝐚𝐝𝐢𝐧𝐠 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 & 𝐏𝐡𝐢𝐥𝐨𝐬𝐨𝐩𝐡𝐲 PTJ wasn’t just a one-hit wonder—he developed a trading system that worked for decades. 𝗛𝗶𝘀 𝗸𝗲𝘆 𝗽𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲𝘀: ✅ 1. Risk Management Comes First → “The most important rule is to play great defense, not great offense.” → He always cut losses fast and never let a losing trade run. ✅ 2. Asymmetric Bets (High Reward, Low Risk) → He only took trades where the potential upside was 5x+ the risk. → He called this “picking up dollar bills in front of a steamroller.” ✅ 3. Never Add to Losing Positions → “Losers average losers.” 🚫 → He never doubled down on a losing trade—he exited fast. ✅ 4. Trade Market Psychology & Trends → He believed markets move in repeatable cycles based on human behavior. → He used technical & macroeconomic signals to time big moves. ✅ 5. Stay Flexible → He constantly adjusted his strategy based on market conditions. → “Every day I assume every position I have is wrong.” This mindset helped him win in bull & bear markets! 📊 𝟓) 𝐓𝐡𝐞 𝐒𝐞𝐜𝐫𝐞𝐭 𝐁𝐞𝐡𝐢𝐧𝐝 𝐏𝐓𝐉’𝐬 𝐄𝐝𝐠𝐞: 𝗣𝗮𝘁𝘁𝗲𝗿𝗻 𝗥𝗲𝗰𝗼𝗴𝗻𝗶𝘁𝗶𝗼𝗻 🔄 PTJ wasn’t just looking at news or fundamentals—he focused on patterns in price movements. 📌 He noticed markets followed similar boom & bust cycles over decades. 📌 He combined historical analysis with modern technicals to find high-probability trades. 📌 This allowed him to predict major shifts before they happened! His ability to recognize patterns & act fast gave him a huge advantage. 🚀 𝟔) 𝐏𝐚𝐮𝐥 𝐓𝐮𝐝𝐨𝐫 𝐉𝐨𝐧𝐞𝐬’ 𝐍𝐞𝐭 𝐖𝐨𝐫𝐭𝐡 & 𝐋𝐞𝐠𝐚𝐜𝐲 • Today, PTJ is worth $8+ billion. • Tudor Investment Corp remains a top hedge fund. • He’s now a major philanthropist and Bitcoin advocate. His lessons continue to inspire traders globally. 🌎 𝟕) 𝐖𝐡𝐚𝐭 𝐓𝐫𝐚𝐝𝐞𝐫𝐬 𝐂𝐚𝐧 𝐋𝐞𝐚𝐫𝐧 𝐟𝐫𝐨𝐦 𝐏𝐓𝐉 📌 𝗠𝗮𝘀𝘁𝗲𝗿 𝗿𝗶𝘀𝗸 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁—your #1 job is to protect capital. 📌 𝗢𝗻𝗹𝘆 𝘁𝗮𝗸𝗲 𝗵𝗶𝗴𝗵-𝗿𝗲𝘄𝗮𝗿𝗱 𝘁𝗿𝗮𝗱𝗲𝘀—small risk, huge upside. 📌 𝗡𝗲𝘃𝗲𝗿 𝗮𝘃𝗲𝗿𝗮𝗴𝗲 𝗱𝗼𝘄𝗻 𝗼𝗻 𝗹𝗼𝘀𝗲𝗿𝘀—cut bad trades fast. 📌 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁 𝗽𝘀𝘆𝗰𝗵𝗼𝗹𝗼𝗴𝘆—history repeats itself. 📌 𝗦𝘁𝗮𝘆 𝗮𝗱𝗮𝗽𝘁𝗮𝗯𝗹𝗲—markets change, so should your strategy. This thread breaks down how PTJ made millions & built a legendary career! Happy Reading!