PSYCHOLOGYM38

Decision Frameworks and Checklists

Build robust decision frameworks, checklists, and pre-mortems to avoid common investor mistakes.

Learning Goals

  • Use investment checklists to evaluate opportunities consistently.
  • Apply pre-mortem thinking to identify potential failure modes.
  • Build a process that reduces emotional noise.

Core Concepts

Checklist Investing
Beginner

A checklist ensures you consider all relevant factors before making a decision and prevents skipping critical analysis.

Pre-Mortem
Beginner

Imagine a decision failed and work backward to identify causes, which helps reveal hidden risks.

Rule-Based Decisions
Beginner

Use rules for asset allocation, entry, and exit so emotions do not drive your actions.

Indian Market Context

Many successful Indian investors use simple checklists to evaluate business models, management quality, and valuation before buying.

Hands-On Calculators

Future Value Calculator
Future Value₹3,10,585

Gain: ₹2,10,585

Behavioral Insight

🧠 REACTIVITY: Without a framework, investors react to news and miss the bigger picture.

From History

Decision Frameworks and Checklists

Investors with a checklist-based process avoided chasing the 2017 penny stock fad and instead focused on fundamentally strong businesses.

Take the Quiz

Module Quiz
A pre-mortem is:
Checklists reduce the chance of missing important analysis steps.
Rule-based investing helps by: