What are Supply and Demand?

In the next lessons, you will be able to learn how to trade Set and Forget’s supply and demand methodology. The well-known forces of capitalism rule the markets the same way the law of gravity governs our planet. Buyers and sellers are in a constant and never-ending battle.

The only reason why price moves in any market is because of an imbalance in supply and demand. The greater the imbalance, the greater the movement.

In the meantime, news occurs every day, affecting our planet’s different economies. Positive news usually means increased demand and lessened supply, equating to higher prices. Negative news usually means lower demand and increased supply. Supply is simply the amount available, while demand is the amount that is wanted.

  • Supply is the amount available at a particular price, while demand is the amount that is wanted or desired at a specific price. As prices increase, seller’s willingness to get rid of their products will also increase. This is called the supply curve.
  • On the other side of that equation, buyers will demand more at lower prices; as price increases, we will generally see that demand.

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