Through wisdom a house is built, and by understanding it is established; and by knowledge the rooms shall be filled with all precious and pleasant riches.
That is why it is important to do due diligence before investing in a stock. Don't just buy because it is a hot tip or it is the talk of the town. A stock's sudden price rise may be due to speculation and if you are caught up or what my stocker friends term as "ipit" then you might get burn and lose a lot.
I recall the SEC's propaganda in the past.... INVEST...... INVESTIGATE