Educational articles

What is overhead supply and why is it important?

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Overhead supply is a term primarily used in technical analysis and refers to a situation where there is a significant amount of resistance from sellers at certain price levels above the current price of an asset. This resistance often occurs because previous buyers are looking to sell their holdings at or near their break-even point or for a profit. Essentially, it’s the supply of shares, contracts, or assets that could flood the market if the price rises to a certain …

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What is the difference between a managed fund and a listed fund?

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The main difference between a managed fund and a listed fund lies in how they are structured, how they operate, and how investors buy and sell units in them. Here’s a breakdown of the key differences: 1.Structure Managed Fund: A managed fund is typically an unlisted investment vehicle, where the fund manager pools money from investors to invest in a variety of assets (e.g., stocks, bonds, real estate). Investors in a managed fund buy and sell units directly from the …

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How do stocks make parabolic moves?

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In the stock market, when something is described as “parabolic,” it usually refers to a sharp, rapid, and often unsustainable rise in the price of a stock or a market index. The term “parabolic” is used because the price movement on a chart resembles the shape of a parabola — a curve heading higher that gets steeper and steeper. This parabolic rise typically happens when there’s intense buying activity, often driven by speculative behaviour, hype, or fear of missing out …

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What are risk on and risk off assets?

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“Risk-on” and “risk-off” are terms used to describe the prevailing sentiment in financial markets, indicating whether investors are generally willing to take on risk or are seeking safety during a given period. These terms often reflect the broader economic or geopolitical conditions and investor mood. Here’s what each term means: Risk-On Assets Definition: Risk-on assets are investments that tend to perform well when investors are more willing to take on risk, typically during times of economic growth, stability, or optimism. …

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8 reasons why holding onto a losing stock is detrimental

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Holding onto a losing stock can be detrimental for several key reasons: 1.Opportunity Cost When you hold onto a stock that’s losing value, you are tying up your capital in an underperforming investment. This means you’re missing out on the opportunity to invest that money elsewhere, potentially in more profitable opportunities. The market moves quickly, and by not reallocating your funds to better-performing assets, you could be sacrificing potential returns. 2.Loss Aversion Many investors hold onto losing stocks because of …

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