Lately I have felt the need to judge my decisions or performance on more than one scale - "Good/Bad" and "Right/Wrong". Good-or-bad will be based on the reason behind doing something and right-or-wrong on purely the result of doing it.
For example, if I invest my time and money in buying a particular stock and lose money on it (after I close the position) - I would like to call it a wrong decision. But if that decision was based on reliable data which pointed to a potential upside more than the $ value of my investment [time & money] - then it was a good decision. So the decision was good, but unfortunately wrong at the same time. On the other hand if I had invested based on a tip and made money on the trade - I would like to call it a bad decision, which turned out to be correct .
Before I go on any further, let me explain why I need to make such a differentiation. How you distinguish between "good/bad" and "right/wrong" is only a matter of semantics. I am tired of people who have a habit of pronouncing "I knew it" after something has gone wrong. For example denouncing the efficient-market theory has become very fashionable on public forums these days. The recession and the financial crisis make it very easy to rubbish any theories popular in the last decade. Suddenly on hindsight, all the theories backed by 'clearly scientific' techniques seem to be 'unmistakably wrong'. I wonder where these experts were hiding when everything seemed to be working fine. I bet half of them promoted the exact opposite things five years ago.
Anyway, I don't mind people making a quick buck out of the prevailing national sentiment. What I do want however, is to improve my knack of spotting a winning business opportunity and to be true to my decisions (and ignore hindsight experts). I need to stop patting myself on the back for a 'fluke' and not push myself to insomnia over an unprofitable outcome. Results are important and so are the reasons behind doing anything. But both of them need to be kept in different boxes. I love reading biographies but have rarely come across an accurate one. Everybody makes stupid decisions (and fair share of them) in real life. How come they are conveniently forgotten most of the time? Anyway, I think I made my point here (to myself).