Many people have a rough understanding of their Intelligence Quotient (IQ), but do you know your Adversity Quotient? The IQ attempts to provide a standardized measurement of your intelligence, but when it comes to smarts alone, I really don’t believe there is a strong correlation to potential investing success. Undoubtedly, extremely low IQ’s will probably hurt an investor’s ability to do well in the markets, but extremely high IQ’s may be a handicap as well. I’ve met my share of wealthy citizens who have done great in the markets and many of them weren’t the brightest bulbs.  Similarly, I know a few brainiacs that do poorly with stocks.

So let’s assume that successful investors sit in the middle of the bell shaped IQ curve. What makes the difference between a winning investor and losing one if not intelligence? In my opinion, a lot of it has to do with the Adversity Quotient. Developed by Dr. Paul Stoltz, CEO of Peak Learning and author of several books on the subject, the Adversity Quotient measures one’s ability to thrive during chaotic moments and make the most of your IQ. Take the time to learn more about your Adversity Quotient by reading one of Dr. Stoltz’s books. It’s a bit unconventional compared to all the investing books that many gurus love to recommend, but I think you’ll benefit.