Wanguo International Mining (3939.HK) has ended the week in the red, yielding negative results for the shares at they ticked -4.71%. In taking a look at recent performance, we can see that shares have moved 0.00% over the past 4-weeks, -6.90% over the past half year and -12.90% over the past full year.

Stock market triumph can be just as much about learning how to minimize losses as it is about picking winning stocks. Not even the most seasoned professional investors are right all the time. Successful investors know how to act quickly and protect themselves from big losses. Sometimes those sure-fire stock picks don’t perform as planned. Being able to detach from any emotion that one might have to a certain stock can help with being able to cut and run when the time is right. Investors will often try to convince themselves that the research was correct and the stock will bounce back, but this can lead to extended losses and future portfolio disaster. Sometimes markets or individual stocks will move in a direction that nobody expected. Being able to take a punch and move on is what may keep investors from experiencing quick defeat in the stock market.

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 43.06, the 7-day is at 41.00, and the 3-day is spotted at 44.06 for Wanguo International Mining (3939.HK).

Investors may be tracking certain levels on shares of Wanguo International Mining (3939.HK). The current 50-day Moving Average is 1.71, the 200-day Moving Average is 1.74, and the 7-day is noted at 1.65. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Traders may be relying in part on technical stock analysis. Wanguo International Mining (3939.HK) currently has a 14-day Commodity Channel Index (CCI) of -129.78. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Wanguo International Mining (3939.HK) is 38.55. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

There are various types of investment philosophies that investors may choose to follow when approaching the stock market. Value investing involves searching for undervalued or bargain stocks that may eventually offer solid returns. Growth investors often buy companies that have highly promising growth potential. Some investors will choose to invest with a contrarian approach. This entails making investment decisions that are opposite of what the majority are doing, such as buying when everyone else is selling and vice-versa. Socially responsible investors may be searching for companies that subscribe to a high level of ethical or moral standards. 

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.