I just thought of something I need to share with you all — the principles of supply and demand are simpler than you think, but most people don't realize how much they influence investments.

Simply put, demand is the desire to buy, and supply is the desire to sell. When more people want to buy but there are fewer goods, prices go up. Conversely, if the opposite happens, prices go down. It's like a tug-of-war game between two sides.

Let's look at a real example. Last March, the Strait of Hormuz was closed due to the Iran war. Over 20% of the world's crude oil disappeared from the market immediately. This factor created a situation of "severe supply contraction" — the law of supply tells us that when supply decreases while demand remains the same, prices will skyrocket. And it actually happened — oil prices surged like a rocket.

In financial markets, it works the same way. When a company has good news, investors want to buy more shares (demand increases). Meanwhile, some shareholders hold back from selling, so stock prices rise. Conversely, if the news is bad, sellers increase, but buyers disappear, and prices fall.

For stock traders, the Demand Supply Zone technique is very useful. You look for points where prices move up or down rapidly, and when they slow down, wait for new factors to come in. If buying power returns strongly, prices break upward. If selling power wins, prices plunge further. This breakout point is a good opportunity.

The most important thing is to understand that all asset prices — stocks, oil, gold, even digital assets — are driven by this force. If you can accurately predict demand and supply, you can also predict prices well. It’s not a complex science; it just requires practice and observation of real market data.