It seems very basic, but the vast majority of people cannot do it. If you can accomplish all three points, you have basically left the ranks of retail investors:
🦄 Three questions to ask before investing, a summary of years of pitfall experiences:
1) Whose money are you making, and why can you make this money?
2) What is the risk control strategy corresponding to this strategy, and what is the proportion of risk exposure? In the most extreme case, what would the asset price be, and can you bear it?
3) What is your logic for making money, and what proportion does this factor account for among all price influencing factors? How do you control other factors?