In 2007, one man made $15 billion betting against the US housing market. His personal cut was roughly $4 billion. The largest single-year income in Wall Street history. And almost nobody saw it coming, including most of the people who were supposed to be watching.

This is the complete story of John Paulson and the trade that redefined what was possible in financial markets.

In this episode you'll learn:

• How a merger arbitrage specialist saw what every major bank missed
• The role of analyst Paolo Pellegrini in uncovering the subprime fraud
• How credit default swaps turned a thesis into a $15 billion payday
• Why the trade was asymmetric by design (limited downside, unlimited upside)
• The psychological pressure of being right while the entire market says you're wrong
• What the greatest trade ever made teaches about independent thinking and conviction

This episode connects to all three pillars of trading: Mind, Method, and Money.

TIMESTAMPS0:00 - The Collapse (Cold Open)2:00 - The Merger Man7:00 - The Discovery13:00 - The Trade18:00 - The Payday22:00 - The Lesson

Based on Chapter 68 of The Complete Trader's Edge by Louw van Riet.

Get the book: https://completetradersedge.com/the-book/Read the full article: https://completetradersedge.com/john-paulson-greatest-trader/Free trading resources: https://completetradersedge.com/start-here/

Next episode: Mark Douglas, the man who taught traders how to think.

This is education, not financial advice.