Heads up, Fools. If you own shares of Redbox DVD parent Outerwall (NASDAQ:OUTR), action-camera maker GoPro (NASDAQ:GPRO), or beauty-product licensor Coty (NYSE:COTY), chances are that you're going to experience a lot of volatility on Wall Street this week.

That's because all three of these stocks will be reporting quarterly earnings, and all three are heavily shorted. When these two forces combine, volatility is almost always the result. If you don't believe me, check out the stocks I highlighted earlier in the month.

But instead of trying to (small "f") foolishly profit from these short-term movements, I think shareholders should prepare for this volatility by checking out the following slideshow. It'll help you decipher between what's short-term noise, and what long-term signals are worth heeding.

Photos: GoPro, Outerwall, Coty

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.