Seeing your stock holdings go up 10% or more in one day can be every bit as exhilarating as it is gut-wrenching when they head in the opposite direction. When these kinds of movements happen, it's important for investors -- especially beginning investors -- to stop and think before making any buy or sell decisions.
Usually, we can't predict these moves beforehand. But sometimes, especially when companies that are heavily shorted report quarterly results, such moves are much more likely to occur. That's exactly what's happening this week with SodaStream (NASDAQ:SODA), Groupon (NASDAQ:GRPN), and Tesla (NASDAQ:TSLA).
In an effort to stop anyone from making hasty decisions, the slideshow below will specifically show why are all likely to make outsized moves, as well as what long-term investors should really focus on.
Brian Stoffel has no position in any stocks mentioned. The Motley Fool recommends SodaStream and Tesla Motors. The Motley Fool owns shares of SodaStream and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.