Video: Luck Versus Skill

There are two basic factors in understanding the result of decisions: luck and skill. We like to think that when we make good decisions, it's because of skill, and bad decisions are because of bad luck! But really, you can make a good decision, but get unlucky and have a bad result, and equally, you could make a bad decision and get lucky with a good result.

It's important to distinguish between these two factors because otherwise, it could negatively affect your confidence in decision making.