A good trader knows how to book profits but an outstanding trader knows how to book losses. It is in times of losses that your adaptation ability gets tested to the core. It is a difficult task to admit that you were wrong and act on it. Great investors are not just about conviction and perspective. They are about adapting themselves constantly to change. Take the case of Warren Buffett. He is willing to adapt at the age of 87 and admit that he was wrong to miss out on the technology boom. Today the largest holding of Berkshire Hathaway is in Apple. That speaks a lot of a great investor’s ability to adapt.

Millions of years ago when the world was short of flat vegetation, the giraffe learnt to adapt by stretching its neck. Its long neck is probably the best example of how to beat the odds by changing and adapting yourself. This is equally applicable in the field of investing and trading. The savvy investor, who adapts and modifies moves ahead. The rest of the crowd eventually moves out! The ability to adapt is, perhaps, the biggest factors that differentiates the good investors from an average investor.