An important part of my own thought process is looking back and evaluating my decisions without the attempt at justification using ex ante information. You need to assess your decisions not based on whether they made money or not but based on whether they were the correct decisions to make with the information you had at the time. Similar to poker - maybe you went all in with pocket aces once you had three of a kind on the flop but lost because someone else got a full house on the river. You still made the correct decision at the time.
Very interesting read. Thanks for putting it together. I also have to say that sometimes keeping it simple works best. Investors who get mired in second and third order thinking tend to over analyze things leading to analysis-paralysis. I once came across an investor who would strive for fourth order thinking on all his trades. I have no idea what he was “thinking”. Cheers!
Really enjoyed this article guys.. Very informative on many levels. We are often too impulsive and it is when we learn to apply this process we can develop as a person..to become responsible for decisions we make.
Keep up encouraging personal thought amongst your readers, esp on a Sunday ☺️
An important part of my own thought process is looking back and evaluating my decisions without the attempt at justification using ex ante information. You need to assess your decisions not based on whether they made money or not but based on whether they were the correct decisions to make with the information you had at the time. Similar to poker - maybe you went all in with pocket aces once you had three of a kind on the flop but lost because someone else got a full house on the river. You still made the correct decision at the time.
Super interesting piece. Thanks
Very interesting read. Thanks for putting it together. I also have to say that sometimes keeping it simple works best. Investors who get mired in second and third order thinking tend to over analyze things leading to analysis-paralysis. I once came across an investor who would strive for fourth order thinking on all his trades. I have no idea what he was “thinking”. Cheers!
Really enjoyed this article guys.. Very informative on many levels. We are often too impulsive and it is when we learn to apply this process we can develop as a person..to become responsible for decisions we make.
Keep up encouraging personal thought amongst your readers, esp on a Sunday ☺️
(Reminded me of the wheat price soar too!)