According to expert grammarians, there are two types of verbs: dynamic and stative verbs.

Here you have a list of the verbs that cannot be used in the present continuous because they are stative verbs.

Like.→Know.→Belong.→Love.→Realise.→Fit.

Hate.→Suppose.→Contain.→Want.→Mean.→Consist.

Need.→Understand.→Seem.→Prefer.→Believe.→Depend.

Agree.→Remember.→Matter.→Mind.→Recognise.→See.

Own.→Appear.→Look. (=seem)→Sound.→Taste.→Smell.

Hear.→Astonish.→Deny.→Disagree.→Please.→Impress.

Satisfy.→Promise.→Surprise.→Doubt.→Think (=have an opinion).

Feel (=have an opinion).→Wish.→Imagine.→Concern.→Dislike.

Be.→Have.→Deserve.→Involve.→Include.→Lack.

Measure. (=have length etc)→Possess.→Owe.→Weigh. (=have weight).

Now it's your turn

Do you think that this sentence is correct?

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False

"To understand" is a static verb, so it can NOT be in present continuous, only in present simple.

To learn more about Stative verbs, watch the following tutorial.