Paul Tudor Jones - Kings are not born, but made.

Paul Tudor Jones is one of the most secretive personalities in the stock exchange world. However, the size of his fortune, which exceeds the three billion dollar mark, says more about Paul than any soap story from a TV channel.

Paul has been repeatedly recognized as the best futures trader in the world by the most authoritative magazine Financial World, and his fund has branches in many countries around the world. Today, the assets of his fund are estimated at more than six billion.

However, Paul was not born into a billionaire right away, and he had to go through a difficult path of becoming from an ordinary beginner to the king of the futures markets.

The famous trader was born in 1954 in the USA in the state of Tennessee in the small town of Memphis. He received his higher education at the University of Memphis, and later received a scientific degree at the University of Virginia. A very young Paul in 1976 first encountered the world of finance, getting a job as a clerk in a brokerage company.

The ambitious young man does not remain in his position for long and very quickly becomes a broker. According to Paul, he was not satisfied with a job in which he received profit from a commission, and the depressing feeling that he was making money from both losers and winners did not allow him to stay long in this position.  

Therefore, starting in 1980, for two years, Paul became an independent trader and worked only for himself. In order to develop his achievements and gain new knowledge about the world of finance, Paul Tudor Jones enters Harvard Business School.

After studying for a very short period of time, he realizes that the knowledge he receives does not correspond to his ideas and desires, so he immediately leaves the educational institution.

Realizing that his knowledge and experience are not yet sufficient for independent navigation, Paul turns to his uncle William Donavont, who has been familiar with the stock exchange for many years. His uncle, seeing excellent results, decided to recommend him as an apprentice to the famous cotton trader Alice Tiley.  

Opening your own hedge fund.

After leaving for New Orleans and completing his training, Paul begins trading cotton futures , and is successful. Having earned his first capital, the 25-year-old guy makes the most important decision to open his first investment fund, “Tudor Futures Fund”.

The decision he made in 1980 changed his life forever. Starting from the first days of operation, the fund’s business gradually went up, and its annual return for five years did not fall below 100 percent. Now Paul recalls with irony how in 1986 his fund earned only 99.2 percent, which hit his pride hard. The 20 percent drop in the Dow Jones Industrial Average in 1987 in one day ruined hundreds of traders. However, Paul and his Tudor Futures Fund quickly adjusted to the new extreme conditions and in just one month increased the fund's assets by 62 percent.

1993 became one of the most difficult years in the history of the fund, since a conflict occurred between Paul and his main and main partner, which separated them on opposite sides of the barricades. This greatly affected the fund's profitability, resulting in a capital outflow of $300 million.

However, Paul does not stop and begins to open his countries in Europe and Asia. Having lost some of the investors, Tudor Jones begins to actively reinvest all his money into his own fund, and such self-confidence in the person of the manager brought in even more investors.

Trading strategy.

According to Paul Tudor Jones, his earnings are based on the search for turning points, and trades on an already established trend, as a rule, give him losses. However, the search for turning points yields a lot of losing trades, and according to Paul himself, no more than 15 percent are closed in profit.

Despite the low percentage of profitable transactions, he manages to earn six-figure sums only because he manages his capital wisely. Therefore, Paul Tudor Jones can confidently say that the right money management is the key to the success of every trader.