The Checklist Manifesto by Atul Gawande inspired me to write this article about humans’ fallibility in trading. 

Atul is a surgeon and he was appalled that despite availability of cure, studies have found that in a majority of cases, patients of critical ailments fail to receive complete or appropriate treatment.

Due to societal advancements, things have evolved over time from Simple to Complicated and then Complex. As the human brain is limited by the number of details and considerations it can attend to at any one time, it leads to skipping steps in the process and errors are committed.

The solution to this is simple – It is a checklist.

Atul discovered the works of checklists in the airline, construction, culinary and investment industry. Personally I am particularly interested with how checklists can help with our investments. Below is an excerpt from the book and a good story to illustrate.

Some years ago, Geoff Smart, a ...