I monitor my investments more closely than others do-- which is not necessarily a good thing. Proper investing is for a long enough time horizon that checks more frequent than monthly (at most) are counterproductive.
Still, I do have a small amount of funds I allocate for more speculative "investments" that need closer monitoring.
An interesting behavior can be observed from Wall Street analysts: the raise their "price targets" on stocks that their bank is actually invested in!
This is clearly an obvious conflict of interest. That would be like asking the owner of a home what he think's the "right" price would be and ignoring the incentive to inflate.
What's really dastardly is that they will do what's called a "pump and dump." This is where an investment bank hypes a stock they already own (and bought cheaply) and build momentum where the price keeps going every higher. Many stocks on the market are so highly "valued" relative to actual profits that they are losing touch with reality: Tesla Motors, Netflix, Facebook, and several others come to mind.
By the time the smaller investors buy in because they want to make money on the "sure thing"-- the big guys have cashed out, letting the latecomers ride the decline downwards and lose the money.
Analysts don't make money off being correct! When they are dead wrong, they don't lose money either. Investment banks are clearing houses, where it's about selling research and generating commissions. Being right is bonus. Being plausible is all that matters.
When a stock goes up, a lot of times it is a response to "analyst expections." If an analyst expects the price to go up-- magically, the price actually DOES go up. It's classic self-fulfilling prophecy.
It can also explain some really weird behaviors in the market. Not infrequently, a company will post record revenue or profits and the stock price will get hammered. Why? The decline is because the stock underperformed relative to "market expectations"-- i.e., what some analyst at a major investment bank predicts.
A company can figuratively cure cancer and get bad press for not doing anything about world hunger, too. If the market expected both to occur, then the amazing achievement is graded as a failure. Apple has been a company that has suffered from this. They have several times posted record product sales, revenues, and profits only to see the stock price decline because Wall St doesn't like that the growth is slowing down.
If you are speculating in the shorter term, you must understand that financial analysis and sound reasoning may have nothing at all to do with it. It may just be group psychology and managing market perception. When you are in this environment, think about the Dot-Com bubble of 2000, or the everyone-getting-rich-in-real-estate craziness of the mid-2000s.
Even if my speculative position is currently "correct" by every reasonable empirical method, I can still lose big time. Valuation is a *human* phenomenon because humans are the ones assigning value and it's inherently subjective. We ignore that aspect at our peril.