The rule of composition states that images tend to be more dynamic when the focal points exist off center, at specific locations.
The image (or viewfinder, or LCD screen) can be divided (in your imagination) by two equally-spaced horizontal lines and two equally-spaced vertical lines.
The four points formed by the intersections of these lines are ‘hot spots’ for the focal point of your image.

The rule of thirds can be applied by lining up subjects with the guiding lines, placing the horizon on the top or bottom line instead of the center, or allowing linear features in the photograph to flow from section to section.