{"id":16416,"date":"2022-12-11T23:56:00","date_gmt":"2022-12-11T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=16416"},"modified":"2025-01-03T09:50:44","modified_gmt":"2025-01-03T01:50:44","slug":"must-be-clearly-answered","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/","title":{"rendered":"Questions must be clearly answered before entering the stock market"},"content":{"rendered":"\n<p>I believe that most investors have not &#8220;clearly answered&#8221; all the issues discussed in this article. After reading these topics, you may feel that they are nothing, they are very basic and clich\u00e9d, and most of them don&#8217;t take them seriously. What I mean is that you must think carefully, and each question must have a clear answer, and the answer must be yes; otherwise, you are really not suitable for stock market investment.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Questions_must_be_clearly_answered\" >Questions must be clearly answered<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Does_your_temperament_suit_you\" >Does your temperament suit you?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Why_you_invest\" >Why you invest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Why_choose_stock_market_investment\" >Why choose stock market investment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#What_is_your_tolerance_for_loss\" >What is your tolerance for loss?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Are_you_willing_to_invest_the_time_in_research\" >Are you willing to invest the time in research?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Are_you_willing_to_invest_for_the_long_term\" >Are you willing to invest for the long term?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Are_you_ready\" >Are you ready?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Do_you_have_enough_investment_knowledge\" >Do you have enough investment knowledge?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Are_you_investing_with_living_expenses\" >Are you investing with living expenses?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Do_you_know_investment_method_you_adopt\" >Do you know investment method you adopt?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Closing_words\" >Closing words<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Questions_must_be_clearly_answered\"><\/span>Questions must be clearly answered<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_your_temperament_suit_you\"><\/span>Does your temperament suit you?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Do you believe in the saying &#8220;The most important characteristic of investment success is temperament, not intelligence&#8221;? Do you understand the meaning behind this sentence? George Goldman (with Pen name of Adam Smith) said, &#8220;The&nbsp;stock doesn\u2019t know you own&nbsp;it. If you don\u2019t know who you are, the stock market is an expensive place to find out. We human beings are a bunch of emotions, prejudices, and twitches and that makes it hard for us to understand the market.&#8221;<\/p>\n\n\n\n<p>Peter Lynch said: <a href=\"https:\/\/www.investopaper.com\/news\/best-peter-lynch-quotes\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;If you cannot convince yourself thatthe stock price drops by 25%, I will buy, and give up the stock drops by 25%, and I will sell.&#8221; It is best not to buy stocks.&#8221;<\/a><\/p>\n\n\n\n<p>Do you believe what Buffett wrote in his 2004 shareholder letter: &#8220;Be fearful when others are greedy, and be greedy when others are fearful&#8221; Can you do it?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_you_invest\"><\/span>Why you invest?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Are you investing in the stock market just to make quick money? Is there any other reason? How much return do you think is reasonable? Do you know how to calculate it? Are you passionate about investing in the stock market?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_choose_stock_market_investment\"><\/span>Why choose stock market investment?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Why do you choose the stock market as your investment method? Why not invest in real estate? foreign exchange? gold? bond? Even bank deposits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_your_tolerance_for_loss\"><\/span>What is your tolerance for loss?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Can you accept that the stock market will fall by more than 40% in a short period of time, within a few weeks? This is something that just happened in the first quarter of 2020. Buffett once said: &#8220;Unless you can watch your stock holding decline by 50 percent without becoming panic-stricken, you should<br>not be in the stock market.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_you_willing_to_invest_the_time_in_research\"><\/span>Are you willing to invest the time in research?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Are you going to devote more than an hour a day? Please note: Watching financial TV shows or quotes from Internet celebrities, or checking the closing price of stocks you invested in yesterday on your mobile phone, or even exchanging stock market tips with colleagues, these are not investment research or homework.<\/p>\n\n\n\n<p>Why are you buying what you own? Is the business making money or losing money? What is the outlook for next year? What is the annual growth rate for five years? Who are the competitors? How is his market share?<\/p>\n\n\n\n<p>Is it investing in research or doing your homework? The criteria for judging are actually very easy. You must &#8220;actively&#8221; read, search for information by yourself, and think independently based on facts.<\/p>\n\n\n\n<p>Have you thoroughtly read the annual report of the company you invested in last year? If not, I advise you to sell the stocks as soon as possible, and then leave the stock market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_you_willing_to_invest_for_the_long_term\"><\/span>Are you willing to invest for the long term?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>How long do you consider a long-term investment? One year, five years, or ten years? What is the longest period of time you have held a stock? If your answer is not more than ten years, then there is a high probability that you will not be able to earn a satisfactory return in the stock market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_you_ready\"><\/span>Are you ready?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before entering the stock market, the following are the most basic requirements, are you ready? Because the following are the most pressing questions that can affect your investing behavior and can determine your success or failure before you even commit to the stock market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do_you_have_enough_investment_knowledge\"><\/span>Do you have enough investment knowledge?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Do you know the operating rules of the stock market you want to participate in? Have you read more than three classic stock market investment books?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_you_investing_with_living_expenses\"><\/span>Are you investing with living expenses?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Your emergency fund should cover at least three to six months of expenses. Do you have a regular income? Are you retired? Do you need dividend cash flow?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do_you_know_investment_method_you_adopt\"><\/span>Do you know investment method you adopt?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Are you a conservative or aggressive investor? What is your circle of competence? Do you prefer investing in growth or small caps, or blue-chips? Do you borrow money to invest? Do you invest in derivative financial products such as warrants?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Closing_words\"><\/span>Closing words<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Be honest! If any of the questions listed in this article, after asking yourself, your answer is no, I advise you not to invest in the stock market.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"134\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/12\/think-1600x1200-1.jpg\" alt=\"\" class=\"wp-image-16435\"\/><figcaption class=\"wp-element-caption\">credit: shutterstock<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/30\/figure-out-before-investing\/\">Figure out essential things before buy a stock to make sure invest success<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/11\/must-be-clearly-answered\/\">Questions must be clearly answered before entering the stock market<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/20\/stock-resources-tools-books\/\" target=\"_blank\" rel=\"noreferrer noopener\">Articles set for US stock dummies: resources, tools, books investors must have, ETF tracking broader market, how to trade US stocks?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/25\/necessary-conditions-for-successful-investment-trilogy-do-investing-homework-by-yourself\/\" target=\"_blank\" rel=\"noreferrer noopener\">Do investing homework by yourself: Necessary conditions for successful investment trilogy<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/04\/investor-temperament\/\">The most important quality for an investor is temperament, not intellect<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Questions that need to be clearly answered : Is the temperament suitable? Why invest? Why choose the stock market? A series of key questions to you.<\/p>\n","protected":false},"author":1,"featured_media":16435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,54,43,574,11],"tags":[],"class_list":["post-16416","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-concept","category-generic-us-stock-knowledge","category-peter-lynch","category-temperament","category-buffett"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/16416","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=16416"}],"version-history":[{"count":29,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/16416\/revisions"}],"predecessor-version":[{"id":32856,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/16416\/revisions\/32856"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/16435"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=16416"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=16416"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=16416"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}