I've noticed that investing in the stock market also offers many chances for people to jump to a conclusion prematurely. In fact, conclusions about the entire market can be wrong. Many people might assume that this company's stock is destined to take a big spill during the day. That's not necessarily the case. Perhaps investors actually expected the news to be worse.
Stocks can sometimes go up on bad news.
I've jumped to many conclusions in investing, myself. When I was a more bone-headed investor than I am today, I would read an article on an intriguing company in a magazine, read a little more about it online, and then buy. Without ever comparing it to its industry peers. Without ever considering what its risks were. Without ever evaluating my portfolio as a whole, to see if I was perhaps a little over-weighted in one sector or another.