Risky Play or Bargain? Update on RLJ Lodging Trust (NYSE:RLJ)

RLJ Lodging Trust (NYSE:RLJ) are valued at $18.40 at the time of writing and have moved -0.22% since the open.  Smart investors often look for value stocks with upside potential.  

One of the biggest downfalls of the individual investor is not being able to take losses when it becomes necessary. Of course nobody wants to take a loss, but the repercussions of not letting go of a losing stock can end up sealing the demise of the well-intentioned investor. Many professionals would probably agree that the pain of realizing a loss is more intense than the joy of picking a winner. Investors who become reluctant to sell losers may be delaying the inevitable and essentially suffocating the portfolio. Not addressing the losing side can have severe negative effects on the long-term health of the portfolio. Investors may have to find a way to face the music and sell when they realize that a trade has gone sour.

Defining specific goals and creating an overall stock trading strategy can be a big help for the individual investor. Some investors are only interested in buy and hold strategies, while others will opt to try and capitalize on short-term market movements. Investors may also decide to do a little bit of both. They may choose a selection of stocks that they plan on holding for a long time, and they may choose others that they plan on holding for only a short period of time. Whichever way the investor decides to go, they should be prepared to complete all the research. Whether they want to study the fundamentals, technicals, or both, finding quality stocks may be at the forefront of the search.

After a recent check, shares of RLJ Lodging Trust (NYSE:RLJ) have been seen trading -6.84% off of the 50-day high and 5.87% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are 1.79% away from the 20-day moving average and -0.16% off of the 50-day average. If we take a wider approach, shares have been trading -7.57% away from the 200-day moving average.

Individual investors are constantly hearing about the next hot stock to buy. Acting purely on these types of tips can be hazardous to the portfolio if the research is not completed. Sometimes these stock tips will pan out and be correct, other times they can leave the investor wondering why they acted on the speculative advice. Even if a stock tip is correct, the results may have already been manifested and the investor would simply be getting in way too late. Knowing what information is reliable can drastically improve the chances of making smarter stock picks. Even the most praised stocks may not be able to withstand an overall market downturn.    

Over the last year, RLJ Lodging Trust (NYSE:RLJ)’s stock has performed -9.27%. For the last six months, the stock has performed -6.69%. From the start of the calendar year, shares have been 12.20%. Zooming in closer, company stock has been 4.07% for the quarter, 0.71% over the past month, and 0.88% over the past week.

The technical stats for RLJ Lodging Trust are as follows. RLJ Lodging Trust (NYSE:RLJ) is trading 15.65% away from the stock’s 52-week low and -23.24% off of the 52-week high. Current levels place the company 1.79% away from it’s 20-day simple moving average. The average volume stands around 1674673. Trading volume is a hugely important consideration for any investor.  By watching how many shares are trading hands and looking for any changes in that activity, trading opportunities can be spotted along with a deeper understanding of the reliability of other indicators on the stock.  A significant increase in trading volume means that more than double the average amount of stocks are moving.  When volume is decreased significantly, it may indicate there is an issue that shareholders should watch out for.  It’s also important to take into consideration how long the unusual volume sustains for.  If it’s only the one trading day, it can be dismissed as an anomaly.