Before modern warfare, when there was still foot solders, archers, spearman, and knights, the battle was mass carnage. In the heat of the battle when there are dangerous weapons discharging, there seems to be much confusion and anarchy. At times, there may seem to be confusion in the economy as well and at other times, it may seem to be in order.
One of the main ideas of economic thought is the concept of supply and demand. The collective supply of a product must meet the complete extent of the demand of the consumer. For example, a simple water bottle is a product that people may want and demand. The price of the item, the water bottle in this example, is determined by the amount of the supply is to the demand. So if there are one hundred water bottles and there are one hundred people who want one, then the demand is met. The price is also determined by the supply and demand. If there are more water bottles the price will become lower to meet the demand, but, if there is a scarcity of the product, the price may go up to meet the price people are willing to pay. When both are met it looks like crosshairs and there is a equilibrium.
Besides water bottles, another thing that is in massive demand are financial products and investments. There is a supply and demand of investments that can be observed on a daily basis. One stock may be in high demand and can be on the high volume category or in the highest gainers. Ones investment can vary everyday based on the demand and there are many factors that go into this. Making a good sound decision of what kind of investment one desires to make can be of much benefit to the individual. For example, there are times when blue chips may be hot, then another time when junk bonds may be in demand.
On the other side of the spectrum there may be or what appears to be mild disarray of the economy. The supply and demand may be skewed. The demand may be high and the supply may be low or vice-versa. And sometimes the demand and supply are both high or the opposite. This can be true for an investment as well. The price of a stock can be high due to its demand; there are many factors that go into this. This can be very confusing for investors and for those that are unfamiliar with this process, it can be very dangerous and risky.
To bring this to peace, the economy and investing can be a battle where it may be difficult to find order. But with careful education and practice, one can get through the fight alive and become a financially heroic champion. Working in a team can also win fortitude of investments. To keep from getting financially wounded, it may be good to keep an imaginary portfolio instead of investing in dangerous situations for practice while one is training to be gloriously victorious.