eToro PI Spotlight - Episode 26: thomaspj

Summary

In this eToro Pi Spotlight series, Felix Fex examines the trading activities of Thomas Parry Jones, an elite investor on eToro. Thomas, known for his hybrid approach of technical analysis and macroeconomics, has impressively managed to deliver profits for 4.5 years with minimal volatility. Despite some discrepancies in his bio, such as trading a silver ETF and using leverage, his portfolio, consisting mainly of finance and tech stocks, has shown consistent growth. Thomas's strategy involves significant market timing, which raises questions for those skeptical of short-term stock movements. Fex concludes that Thomas appears competent and adaptable, suggesting potential for continued success in both bull and bear markets.

Takeaways

• 😀 Thomas Parry Jones, known as Thomas PJ, is an elite eToro investor who is being promoted to a black star elite pro and manages a significant amount of money.
• 📊 Thomas has a strong track record with a 35.66% annual return, beating the NASDAQ by over 100% and the S&P by approximately 200%, although he claims a 300% gain over S&P which is slightly inaccurate.
• 💼 Thomas is a London-based financial analyst with a global trading company, utilizing a hybrid approach of technical analysis and macroeconomics.
• 🚫 According to his bio, Thomas does not trade commodities or crypto and does not use leverage, although there are instances where he has traded silver ETFs and used leverage on Nvidia trades.
• 💼 His portfolio is concentrated with 13 stocks, mainly focused on finance and tech sectors, with companies like City Group, Goldman Sachs, JP Morgan, and tech giants like Nvidia, Netflix, and Microsoft.
• 📈 Thomas has a consistent record of positive returns over 4.5 years with low volatility and has successfully navigated through market downturns without significant losses.
• 📊 His risk level is stable and moderate, with an average risk of four and a trading frequency of 8.89 trades per week, indicating a medium-term investment approach.
• 📉 Thomas has shown the ability to make gains during market downturns, such as in early 2020 and 2022, when major indices like the S&P and NASDAQ experienced losses.
• 🤔 There are minor red flags regarding Thomas' adherence to his stated strategy, such as trading a silver ETF and using leverage on Nvidia, which contradicts his bio's claims.
• 🔄 Thomas has demonstrated a tendency to make drastic changes in his tech exposure, moving from zero to a significant portion and then back out, indicating an active market timing strategy.
• 👍 The presenter views Thomas as a competent and decent person, suggesting that his past performance and approach could potentially be replicated in the future, although past results are not a guarantee of future success.

Q & A

Who is Thomas Parry Jones, also known as Thomas PJ, and what is the purpose of the video?

Thomas Parry Jones, known as Thomas PJ, is an elite investor on eToro who is being promoted to a black star elite pro. The video aims to provide an in-depth look at his trading activities and offer an opinion on his performance, with the disclaimer that it's not financial advice.

What is the significance of Thomas PJ's trading history and why is it important to analyze it?

Thomas PJ's trading history is significant because it demonstrates his ability to manage a large amount of money and achieve consistent returns. Analyzing it is important to understand his strategies and performance over time, which can be informative for potential copiers.

What is the claim made by Thomas PJ about his trading style and how is it fact-checked in the video?

Thomas PJ claims that he does not trade commodities or crypto and does not use leverage. The video fact-checks this by reviewing his trading history and noting instances where he has traded commodities indirectly through an ETF and used leverage in intraday trades.

What is the annualized return claimed by Thomas PJ and how does it compare to the actual figures?

Thomas PJ claims a 33% annualized return. However, the video reveals that his actual return is slightly better at 35.66%, indicating that his performance is even better than he states.

How has Thomas PJ's performance compared to major indices like S&P and NASDAQ over the years?

Thomas PJ has significantly outperformed both S&P and NASDAQ. While he claimed to have beaten S&P by 300%, the video corrects this to approximately 200%. He has also beaten NASDAQ by over 100%, showing exceptional performance.

What are the key themes in Thomas PJ's current portfolio and how many stocks does it consist of?

Thomas PJ's portfolio is concentrated with 13 stocks and has two main themes: Finance, which includes banks and electronic payment providers like City Group, Goldman, JP Morgan, American Express, Bank of America, MasterCard, and Visa; and Tech, with stocks like Nvidia, Netflix, Microsoft, and Meta.

What is the discrepancy found in Thomas PJ's portfolio regarding his stated strategy?

The discrepancy is the presence of the iShares Silver Trust ETF in his portfolio, which contradicts his statement of not trading commodities. This is seen as a minor deviation from his stated strategy.

What is the trading frequency and holding time of Thomas PJ, and what does this suggest about his investment style?

Thomas PJ has a trading frequency of 8.89 trades per week and a holding time of 1.5 months, suggesting a medium-term investment style with a balance between active trading and longer-term holds.

How does Thomas PJ's risk level and drawdown compare to other investors on eToro?

Thomas PJ's risk level is consistently at four, occasionally reaching five, but never six. His drawdown for the last year is low, indicating a stable and controlled approach to investing, which is favorable compared to many other investors.

What are the red flags mentioned in the video regarding Thomas PJ's trading activities?

The red flags include the use of leverage on an Nvidia position and a commodities position in silver ETF, despite stating he doesn't use leverage or trade commodities. Additionally, his tendency to make drastic changes in tech exposure, including intraday leverage trades, raises some concerns.

What is the conclusion of the video regarding copying Thomas PJ's trades and what factors are considered?

The video concludes that while Thomas PJ has a strong track record and appears to be a competent and decent person, potential copiers should consider his minor deviations from stated strategy, his market timing approach, and the fact that past results are not a guarantee of future performance.