Not entirely correct.
The red goes straight to the battery because it would power your bike with the key turned off if you ran it to after the ignition switch.
I think Casey was asking about the black wire though...
Truth is, you can put the black wire after the ignition switch or before it. If you put the black wire closer to the battery positive terminal, the voltage sensed will be higher because the electricity doesn't have to run through as many switches, connectors, or feet of wire. When sensed voltage is higher, the regulator kicks in sooner and drops the voltage level lower. If you wire the black wire into something after the ignition switch, resistance is higher and voltages read lower. Therefore the regulator kicks in later and leads to a higher system voltage, overall.