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Paul Tudor Jones Strategy: Top 10 Rules

Updated: Nov 1, 2022

Who is Paul Tudor Jones

Paul Tudor Jones was born on September 28, 1954. He graduated in Economics from the University of Virginia where he also became a welterweight boxing champion!

So not only is he beating the markets, he's beating up people at the same time.

Paul Tudor Jones started off his trading career by working for a commodity broker, here Eli Tulis hired Jones and trained him in for trading cotton futures on the New York Stock Exchange (NYSE).

The funny thing is he actually got fired for sleeping at his desk after a night of partying lol!

Now Paul Tudor Jones has put that in the past and actually manages his own firm Tudor Investment Corporation managing over $7 billion in assets.

His strategy and style of trading in this firm focuses on being broad, diverse and including global macro trading which we do here at logikfx too!

So, if you're interested in learning a similar trading style watch our free web class here.

He also mentions that he includes some event-driven strategies and technical systems within his approach.

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One of Jones best trades was during Black Monday in 1987. Here he predicted the short tripling his capital by selling the U.S stock markets, earning approximately $100 million!

Overall, Jones is an inspiring trader and fund manager with tonnes of experience under his belt and a strong investment approach following global macro fundamental trading.

Let's take a look at Paul Tudor Jones net worth!

How Much is Paul Tudor Jones Worth?

Overall we know Paul Tudor Jones is worth a lot of money. His net worth was predicted recently in 2019 to be around $5.3 billion by Forbes.

Comparing this to people around the world it would make him 7th highest earning hedge fund manager!

All I know is he was a boxer turn trader and now hedge fund manager philanthropist.

Paul Tudor Jones on Bitcoin Investment

A massive surprise in the finance community was big dog Paul Tudor Jones bought Bitcoin to potentially hedge against inflation in 2020. He mentioned to his clients that he sees it as gold in the 1970s.

This is a complete opposite of how other experienced investors see Bitcoin with many stating it has no value at all.

Paul Tudor Jones made a famous quote that:

"the best profit-maximising strategy is to own the fastest horse".

The interesting point Jones made about bitcoin was that he's nor a hard-money person or a crypto nut. He mentions that the digitization of currency is coming and COVID-19 is speeding this up.

He's not wrong too as China have started the race already by making a digital yuan as legal tender in China.

It's currently being tested in four cities in China which are Shenzen, Suzhou, Xiongan and Chengdu. Even businesses like McDonald's and Starbucks there have required to take it on board.

Could cryptocurrency be the next big thing?

Only time will tell.

Paul Tudor Jones Top 5 Quotes

Quote 1 "When I develop an idea, I pursue it from a very-low-risk standpoint until proven wrong repeatedly, or until I change viewpoint."

This is a really important quote from Paul Tudor Jones. The key point to take away is he never starts off with a large bet or trade. He starts off small until he's proven wrong.

Important to understand if you're looking to minimise your losses.

Quote 2 "I've missed a lot of meat in the middle, but catches a lot of tops and bottoms."

The Paul Tudor Jones strategy and ways of trading not only stocks but forex and other assets is mentioned above.

The key message from this is that Paul Tudor Jones is a contrarian he prefers to get the tops and bottoms correct rather than participate in larger trends (missing the meat in the middle).

It shows that most trading strategies and styles work including Paul Tudor Jones Strategy of being a contrarian and picking reversals rather than continuation of trends.

One of the best ways to trade reversals is first understanding the fundamental value and then timing the market directions with technical analysis and sentiment.

Quote 3 "Key is to play great defence, not great offence."

This quote and rule itself follows from a previous point of risking a low amount until proven wrong. How Paul Tudor Jones trades is always playing the defence.

You won't see Paul Tudor Jones making massive trades or bets.

Rather you'll see him focus on smaller trades but on big moves like reversals.