Demand and supply in Financial decision making

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​Ignorance of Demand and Supply is a silent financial destroyer

People often ask one concept I consider while analyzing the financial markets. 

Demand and Supply is never outlooked 

Irrespective of the type of analysis, Fundamentals or technical analysis, regardless of the asset being analyzed, Crypto, forex, stocks, commodities, oil, goods or products. An important factor is Demand and Supply. 


Understanding Demand and Supply will help you play safe(you know when to get in and when to get out), manage your risk, it enables you invest wisely while avoiding scams, rug pulls and securing your finance and portfolio. 


What’s Demand and Supply? 

How does it impact the markets? 

The concept of demand and supply if not well considered, is a ticking bomb which can destroy or elevate your finances.

The Key factor and one of its essentials is the ‘PRICE DETERMINATION’ attributes it possesses. 

Demand means people are asking for the assets and are actually buying or adopting it. 

What triggers demand? 

Answer = Value/utility (purpose) -The ability to solve a problem. 

Before you engage ask for the purpose or reason for the existence of this token, asset, commodity or what’s the value of this company. 

How do you determine Value? 

Utility/Purpose = in economics Utility is the measure of satisfaction,pleasure or benefit a consumer gains from consuming a good or service. It is the same as that of the financial market. 


An Sui blockchain user will argue fast and cheap transactions on the chain against the high fees and time frame on ethereum blockchain- that’s the utility he gets 

It is this satisfaction and benefit that will make someone go and search for the product, asset or token, ask about it and pay for it which equals (DEMAND) 

Here is a link to my utility tokens on CMC

Whenever you want to be a creator. Consider

. The utility the product will give.

.The audience in search of that utility. 

.The existing alternatives. 

.What your products will do differently.

.The audience that will appreciate the difference in your products comparing it to existing ones

.The environmental and climate impacts on your products. 


This is also applicable in creation of any financial instrument in the financial markets. 

(Be blunt and realistic in making the assessment, avoid imaginations and emotions, the market doesn’t care about what your feel)

What happens in the face of demand? 

Price rises/increases; whenever there rise in demand. Let me break it down 

Note: the primary purpose of any business is to make profits except for charity organization. 

In Relation to physical commerce

There are three chains in the distribution market. The most common is from 

Manufacturers-Wholesaler-Retailers-Consumers 

There also exist, from

Manufacturers-Retailers-Consumer

 Manufacturer-Agent-Wholesaler-Retailer-Consumer 

The manufacturer gives the wholesaler at 2$ price per product. the wholesaler gives the retailer at 2.5$ to obtain profit, the retailer gives the consumer at 3$ 

Price increased from 2$ at manufacturers desk to 3$ at consumers desk because there is demand for the product. consider where no one cares about the product. The retailer will have to sell at a lower price or watch his goods get expired without making profit or sells 

The rise in demand of the product will amount to rise in price of the product. 

However this will not be realistic when there’s excessive supply

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