Why Every Entrepreneur Should Invest Like an Airline Pilot

As I was reading my daily dose of entrepreneurship this week I fell on a blog that touched on why investors should always utilize the DODAR checklist similar to an airline pilot. I'll be honest with you I didn't have a clue what DODAR stood for. Do you?

DODAR stands Diagnose – Options – Decide – Act – Review and is used in aviation by pilots when a problem arises.

This blog is not about aviation but about investing 2.0. Guess what in both examples you would rather not crash so you can apply the DODAR technique in investing too.

This is your "Diversified Entrepreneur Investor" Captain Speaking

The DODAR technique, originally used by pilots in aviation, can be effectively applied to investing to make better decisions and manage risks. DODAR stands for Diagnose, Options, Decide, Act, and Review.

Here's how every diversified entrepreneur can use this approach:

Diagnose: Identify the specific issue affecting your investments. This could be a market-wide downturn or a problem with an individual stock in your portfolio.

Options: Consider various strategies to address the situation. This may include hedging against further declines, adjusting your portfolio allocation, or simply waiting out market volatility.

Decide: After carefully evaluating your options, make an informed decision based on your investment objectives and risk tolerance.

Act: Implement your chosen strategy. This might involve placing trades, setting up stop-loss orders, or making other adjustments to your portfolio.

Review: Regularly assess the outcomes of your decisions and the overall performance of your investments. This step allows you to learn from your experiences and refine your approach for future situations.

By applying the DODAR technique, investors can approach decision-making in a structured manner, similar to how pilots handle complex situations. This method encourages a systematic evaluation of problems and potential solutions, helping investors navigate market volatility and make more informed choices.

It's worth noting that some variations of DODAR include an additional "T" at the beginning, standing for "Time available to make a decision". This can be particularly relevant in fast-moving market conditions where quick decisions may be necessary.

Ultimately, using a pilot-like approach to investing can help every diversified entrepreneur stay calm under pressure, make rational decisions, and potentially improve your long-term investment outcomes.

Let's do this

SsF