Hey there, Fools. I've summoned our Motley Fool CAPS community once again to highlight a few of Tuesday's biggest winners among the stocks with a top rating of five stars.

Without further ado:

Company

Yesterday's Gain

Quicksilver Resources (NYSE:KWK)

22.76%

Euroseas

19.51%

ArcelorMittal (NYSE:MT)

14.29%

Weatherford International (NYSE:WFT)

13.84%

Allegheny Technologies (NYSE:ATI)

9.63%

There's a reason why I selected notable five-star gainers, as opposed to other big-name winners making noise on Tuesday, like low-rated Morgan Stanley (NYSE:MS). Stocks go up all the time, but unless you were able to predict the pop, what does it matter?  

Our community of more than 125,000 CAPS Fools considers its five-star stocks the most likely to outperform the market. And so far, CAPS has indeed proved its market-beating prowess: In the first 20 months after its inception in late 2006, five-star stocks beat the market by 12 points, annualized.

Written in the (five) stars?
For example, 97% of the 151 All-Stars who've rated Quicksilver Resources have a bullish opinion of the stock. Late last month, one of those members, devilinside, explained why Fools needed to pounce on the natural gas provider:

The world is not finished growing. It has just taken a breather for now. And [Quicksilver] will be there producing what the world needs to grow. The fundamentals of this company are excellent. Trading around it's 53 week low and ready move when the economy starts its recovery. If youre waiting to hear when it will happen, you'll already be behind.

Shares of Quicksilver are up 50% since that call.

The bullish lesson?
Bad news is always a bargain hunter's best friend. Like CAPS' devilinside understands, quality stocks often move higher (in Quicksilver's case, significantly higher), well before the economy even shows signs of a turnaround. As Warren Buffett recently wrote, "[I]f you wait for the robins, spring will be over."

And now for the losers ...
Of course, winning isn't everything in the stock market.

Here are five of Tuesday's biggest one-star decliners:  

Company

Yesterday's Loss

BancTrust Financial Group

8.42%

Palm Harbor Homes (NASDAQ:PHHM)

5.37%

Beacon Roofing Supply

5.27%

Berkshire Hills Bancorp

4.85%

China Natural Resources

4.03%

While yesterday's drop in five-star stock Activision Blizzard (NASDAQ:ATVI) may have caught our community off guard, one-star stocks are fully expected to fall hard: Over the 20 months after CAPS started, one-star stocks dropped an average of 11.4%, annualized.

Did CAPS call the fall?
Last month, for instance, CAPS member HansHauge shared these bearish thoughts on Palm Harbor Homes:

There's 12 months of homes sitting on the market right now...who is going to buy a trailer? You can't get them financed because they drop in value like Bear Sterns and anyone able to buy will snag up a foreclosed home, bank auction, one of the many glut show homes. You lose Palm Harbor Homes.

Not surprisingly, shares of the factory-built-home provider are down 29% since that call.

The bearish takeaway?
Always know where you're exposed. One of the most common mistakes we make as investors is underestimating how sensitive a business can be to specific economic and industry-related variables. As CAPS' HansHauge understands, with the glut of homes still on the market, buying into a homebuilder -- let alone a manufactured-home builder -- doesn't seem like the smartest bet to make.

The final Foolish move
Investors often focus strictly on stock price movements without realizing that developing a proper stock-picking process counts most.

Over at Motley Fool CAPS, tens of thousands of investors are Foolishly sharing insightful investment tips to help, above all else, identify tomorrow's big movers. Over time, consistently reverse-engineering winning -- and losing -- stocks will help you become a more Foolish investor.

Log in to CAPS today and start participating. It's absolutely free and a lot of fun!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Activision Blizzard is a Motley Fool Stock Advisor pick. The Fool's disclosure policy is always the big winner.