THE TOP 5 LESSONS FROM PAUL TUDOR JONES – Market Mondays w/ Ian Dunlap

[Music] So what are the top five lessons from Paul to the Jones uh to use in this Market to get rich and can you explain Who he is because he's interested in What we'll talk about Um We'll talk about him but can you explain To who he is and some of the top lessons Mike is low Is this is that possible uh let me know Yeah we could do that can we do that Yeah better now Yeah you just talk and we got you Okay Um partina Jones He is the Michael Jordan of teachers trading so in 1987 When the entire Market fell apart Who made a killing he's been making a Kill ever since then everyone go Google What is par to the Jones net worth and Put it in chat Um at one point he was making 30 million Dollars a month for his company Um but he's really great in these down Cycles we talk about Ken Griffin later Um so lesson number one Let's be prepared for volatility a lot Of times as investors and Traders we Think volatility is bad volatility is Great if you know how to use it Um number two you got to stay focused on The big picture so even though we know That the market is going to drop I

Called it six months prior to You can really get high off of making Gains off of shorting but you have to Know when to reverse out I think we're Starting to like see a bottom we're Floating heavily to the upside so once Your trains are done Let's say you don't put so you're Shorting features to the downside and Another account you have to have your Long-term portfolio to make sure the Market is going up in your favor so you Swing trade to the downside but invest For the long term on the upside so Ideally you want to be in a position Where you can make 500 percent to a Thousand percent shorting short term and Then over five years hit fifteen hundred To two thousand percent in your long Term in a way in both markets Um never number three never try to Predict the market but always go with The predominant Direction I think a lot Of times people get so caught up in Trying to guess where the market is Going going to go opposed to being in Flow with the market you should be able To look at any chart in five seconds you Can say this is going up Not the airlines is going to slide down CCL it popped up and it's going to come Back down Number four one thing he doesn't talk About a lot and a down market like this

Your target should be 100 to 500 return On investment So if the market is slotting down when Everyone is panicking you should be Going Nuts nuts looking for opportunities in Which you can get 100 to 500 returns and Some of you have done that a red panda Since Ernest done it I'm incredibly Incredibly proud of you guys and number Five uh use leverage carefully Leverage can hurt if you don't know how To use it but if you have a high water Ratio let's say you win 80 of your Trades for every dollar you put into the Market on your swing trades or day Trading account if you're getting 5x 7x It's then to use the capital use some Leverage Trade bigger size so you can hit bigger Gains and then that way you'll be able To be able to make more money in a down Market And take advantage of these once in a Lifetime opportunities so those are like The five biggest lessons I've taken away To implemented from the injury of Futures Trading part to the Jones can I Throw a bonus in there Absolutely this is something that and That was great those are all great and Just reading up on Paul and I see a lot Of people in YouTube putting out his uh That 7.5 billion that's impressive but

One of those things and this is Something early on in trading that I Even had to learn it was decrease the Trades amount when you're not doing well Absolutely decrease your trade amount a Lot of times we'll get into trades and It's not doing well and we'll say all Right well I'll average down but I'll Average down with more money right Because I want to supplement for what I Just lost what is not doing well Decrease the trade amount and decrease How many times you're Trading Absolutely It comes with the discipline of trading And so like if you're not doing it Probably it's like ah what does that Even mean but it's one of those things Like and and when you're doing it it's Just kind of natural like when you see Loss you're like I need to get gains I Need to get gains and I need to get them Quick But the best offense a lot of times like Shoddy says is your defense and so when You see that You're not going to put in a large Amount right or even when you're doing Well this is the reverse side of it when You are doing well You invest small amounts until until It's proven wrong step back right until It's proven wrong yeah that's small Amounts there's nothing wrong with five

Percent gains six percent gains invest Small amounts until you're proven wrong Or until you start to see retracements Or you start to see reversals it's okay This is part of being patient it's part Of being a smarter investor and so their Learn skills but we're telling you this Because obviously I've been through it And so hopefully you don't have to go Through it that was just a little bonus For you it's like hooping like if I if I'm old for nine from three a layup Helps build confidence exactly let alone A layup and one and I make a free throw I'm like boy It was 22 footer looking nice like even If you're training and somebody asked me Yesterday like if I have a small account What should I do I'm like a lot of times Having a smaller account you have an Advantage because it won't [ __ ] you If you lose let's say 500 to a thousand Dollars but if you get three four wins In a row And if you can learn to be able to get Some size eventually and still win with Small contract sizes that you're trading That's the best of both worlds there's Nothing wrong with us here like if you Do two contracts on an option that's a Year out do another two then do four Contracts on the future on the Dow and Then eight on NASDAQ it may not seem Like a lot in one trade but when you if

You win all four trades you don't have 15 to 16 20 000 really fast Um even trading small size it that Basketball analogy is perfect the other One is the baseball analogy right like Do you want to win the batting title or Do you want to be the person who strikes Out and hits 40 home runs Or I don't know what Aaron you love Coming out but it's like a relationship Analogy too like if Publishing down is like going back to Somebody who cheated on you Like for what you want the double of the Misery Let It Go first time you got it At the wrong time let it go pick another Asset and we'll love you back please Very important I like that Very important Boy oh Okay let's let's talk about this Netflix What do we think of Netflix earnings and Uh the fact that they have the highest Revenue Per employee What is that even uh that's even me So for every employee that they have you Know they this is like the ESPN version Of LeBron's going to scored the most Points on a Thursday afternoon when Shannon sharpens one if you just want to Type out A lot of sweater Um but for out of every Tech employee

They their per employee They're generating three million dollars Per employee it's interesting start to Look at I think Apple was at 2.5 Microsoft may have been at 2 million Um I think the customer like I have to You know I've been hard on Netflix for The past year Um they've been doing good the last Three months so I you know I have to say That I was wrong Um on that I don't think the earnings Would be that strong the cost for Acquisition was fantastic they shot up Like crazy I think even the day they Were up four percent they're up to like 357 right now Um they still have a lot A way to go to get back to that high of 700 bucks But The acquisition costs great the earnings Were great Um if they can get that debt structure Down a little bit Maybe maybe a Bible buy yeah over the Next couple of months but yeah they did Great on Earnest for sure I think one of The things Um that kind of shocked everybody and Shocked Wall Street because their Estimates were way up was the amount of Paid subscribers so they they had 7.6 Million paid subscribers in the fourth

Quarter Wall Street was estimating 4.5 Million which is Um and this this is the point we kind of Spoke about this this is the first time That Netflix has had its ad supported Service included in its Revenue Um and so that's important right because What's happening is that people are Signing up for the lower tier that has Ad placements but the people who had Like the nine dollar tier or the 19 tier They haven't lowered it because they Don't want the ads and so you're not Losing customers because of the lower Price which is good so you keep those Customers but you're actually getting More customers now because you have a New price point plus again they still Haven't gone internationally yet so There's still some room for growth but I Think in this quarter here which is is What they're adding in the first quarter Of 2023 is the password sharing price Point And so now you know like before when I Gave like I think shoddy has a name on My account You do I have a name on your account for What Netflix Currently yeah currently don't worry About it I still like yeah but so like That was something that people normally Did right so you figured you lose Customers but now they're going to have

A price show your whole character yo I mean you would lose customers right But now you know there's going to be a Price here where you can just pay for That right so maybe it's 22 instead of 19 and now four people can use your Netflix account so then again you're Still adding more Revenue by keeping the Same customer plus as you get more Content and they have some the shows That blew everything out the water in That quarter Wednesday if you haven't Tuned into that I'm sure your kid has uh So that that went crazy Um they had the the knives out joined The the onion with uh Daniel Craig that Went well so they have they've had some Content that has done well and obviously These new kaleidoscopes yeah these new Tiers are doing well for them the the uh Megan and Harry story you know that did Well for them so the content is rolling It's rolling but these new ad tiers have Helped them so that's why you know they Blew their earnings out the water so Shout out to them I don't think we did We didn't we didn't put the coffin sign Up for them we just said there was some Drugs no I did a couple days ahead Um and it seems that they may have Righted it but yeah it's early in 2023 But the fourth quarter was great first Quarter of this year looks like it could Be promising too

Netflix We will be Monitoring the situation [Music] I know they can't stand it