Millionaire Tradersmore disciplined than the next guy, to survive and prosper in the
game. The most common reason that most traders fail is because
they refuse to properly respect and contain risk. One stubborn
bad trade is all it takes to wipe out years of gains. Tyrone’s in-
sight is that by simply never putting oneself in that position, the
trader already stands a better chance of success than the rest of
the crowd. Just to underscore this point, he talks about his expe-
rience with Chinese traders, which presumably given the strong
cultural emphasis on hard work are far more disciplined than their
American counterparts. Yet, in the end, he states that the Chinese
are just as susceptible to the exact same flaws in risk control as their
American counterparts. Human nature is universal and discipline
is the common thread that unites all great traders across the world.
Constantly Learn and AdaptFinally, as we mentioned in the chapter introduction, what makes
Tyrone such a successful trader is his ability to constantly learn
and adapt. As you follow the course of his career, you see that
he learned how to scalp the open after the glory days of buy’em-
and-hold -’em bull market of the 1990s disappeared. Then, when
decimalization made mincemeat of most momentum traders, he
learned how to use a variety of filters to look for better setups.
Finally, as a trader who simply traded price action and technical
indicators for most of his career, Tyrone then learned to effectively
trade the news by exploiting his old momentum trading skills. The
key takeaway point from Tyrone’s experience is that there is no “one
way” to trading success. The path to profitability requires constant
willingness to try new setups. Just like the markets, trading is not
a static discipline, and Tyrone’s career is a testament to the need
for flexibility and adaptability.