I just realized that many people are still confused about the most fundamental principle in the market, which is supply and demand. In fact, it's much simpler than you think.

Let me explain it simply: demand is the number of people who want to buy a product at different prices, and supply is the quantity of goods that sellers offer. When prices go up, demand decreases, but supply increases. This is called the "law of demand" and the "law of supply."

What I find interesting is that actual market prices are not set by any one person, but occur at an equilibrium point, where the demand and supply lines intersect. At this point, the quantity buyers want to buy equals the quantity sellers want to sell.

In financial markets, this is a bit more complex. The demand for stocks depends on economic growth, interest rates, and investor confidence. Meanwhile, the supply depends on company decisions, such as share buybacks or capital increases, as well as market regulation policies.

What I see as important is that when we understand that increased demand compared to supply causes prices to rise, and when supply exceeds demand, prices fall. This applies to all assets, from stocks, energy, gold, to digital assets.

In fundamental analysis, we look at company performance and forecasts. Good news increases demand; bad news prompts people to sell quickly. For technical analysis, we use tools like Price Action and support and resistance levels to see where buying and selling pressures are.

An example I like is the Demand Supply Zone technique, which looks at moments when prices break out of equilibrium and run away. If prices drop sharply and then stabilize within a range, that signals selling pressure has ended. When prices break above that range, it’s a sign that buying demand has returned strongly. Conversely, if prices rise and then stabilize before breaking down, that indicates selling pressure is coming back.

What I want everyone to understand is that demand and supply are the engines driving everything in the market. If you understand them well, you’ll be able to see where prices are headed next—whether for short-term trading or long-term investing. This is the same fundamental principle underlying all of it.