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No reason to fold the hand pre-flop. It's a small raise, you have a good implied odds hand (JT suited is one of my favorites), and you have position on the raiser... why not call? However, the flop you're really hoping for is a flush, straight, flush draw, or straight draw. Two pair or trips is a good alternative, but it may get you in more trouble because you may be up against a better hand such as AJ/KJ.
I'm not crazy about the way this hand was played post-flop. You got lucky to be called by a worse hand (the fact that the fourth jack was even in play was a miracle) and then he got lucky to hit one of his three outs. However, I'd start assuming he had AJ, KJ, or QJ, and slow way the hell down at some point. It looks like you're slightly overbetting the pot on the flop - I'd bet something like 150 or 160 there. Then 250 or so on the turn. Check the river and if he comes back aggressively, you give him credit for a better jack and fold. If he comes back with a cheaper bet, you can call, show down your loser for cheap, and still live to see another day.
A more aggressive possibility is: bet 150 or 160 on the flop, then check-raise the turn. He's probably going to bet the turn when you check, then you can check-raise and see what his reaction is. If he instantly goes all in, he's got your jack beat and you can fold. If he flat calls (and this doofus probably would), he has a weaker jack or maybe the same hand as you, and you can push on the river. In which case he's still going to hit you with this same bad beat, because no amount of creative play changes the cards that come out.
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