The US Army has an After Action Review (AAR) after any operation.
They will ask two simple questions:-
1) What did we do right and therefore, should continue to do?
2) What did we do wrong and therefore, should try to improve upon ?
The above is a continuos learning process that can implemented easily.
This AAR idea has since been used in the Corporate world.
===========================
Today, I will do an AAR on the earthquake incident in relation to my investments:-
1) What did I do right and therefore, should continue to do?
a) I knew about the earthquake the minute it was reported. Unfortunately, the HK market was closed so I was not able to do any trading.
b) I very quickly went thru my portfolio to see which stock would be hurt by the incident.
c) I then identified the stocks that may do well from the incident, the same stocks that did well from the snowstorms in December / January.
2) What did I do wrong and therefore, should try to improve upon ?
a) When the HK market opened the next day, all the stocks on my watchlist gapped up
b) Thereafter, I lost interest and went on to the things. They continued to go up for the rest of the week !
c) On hindsight, I should have bought some of these stocks during the pre-opening on Tuesday. I should also have waited for a pull-back to buy some more.
d) I should have been invested from Tuesday and thereafter, take my profit on Friday.
e) Why did I not do it ? Lack of focus and the expectation that the market is efficient. I thought that everyone else already knows what is going on and have invested accordingly, when the market gapped up on the Tuesday opening.
f) Lesson Learnt: When there is a short term trend, it could go on for a few days