I've just noticed that many people are still confused about supply and demand, which are fundamental concepts if we want to understand price movements in the market.

Simply put, demand is the desire to buy, and supply is the desire to sell. When more people want to buy but there isn't enough product, prices will go up. Conversely, if there is plenty of product but no one is buying, prices will go down.

Factors that determine supply and demand are important. On the demand side, these include buyers' income, confidence, the prices of related goods, tastes, and even political news. On the supply side, factors include production costs, technology, government policies, and natural disasters.

Looking at the financial markets, when the economy improves, investors tend to be more confident and buy more stocks. For example, in 2026, the Strait of Hormuz was closed due to tense situations. Most of the world's oil couldn't pass through, drastically reducing supply, while energy demand remained high. As a result, oil prices surged rapidly. This is a clear demonstration that factors influencing supply and demand can change unexpectedly due to unforeseen events.

When prices move, it's not because the product itself has changed, but because demand or supply has shifted. Smart traders look for points where prices are out of balance and prepare to seize the opportunity.

Using the Demand Supply Zone technique is a popular way to catch these moments. Often, prices rise or fall quickly and then pause within a range before continuing. That’s the moment traders can enter. Or if prices keep making new highs, it indicates strong demand, and prices are likely to go higher.

What’s important to remember is that understanding the factors that influence supply and demand isn’t difficult, but it requires practice and careful observation of real market prices. The more frequently we track prices, the clearer the patterns become. And once we understand what’s happening, our investment decisions will be much more effective.