Expectations move the price

Everyone knew roses would get more expensive before Valentine's Day, so florists raised prices in advance. In February the price barely changed: the rise had already happened. But if the harvest had suddenly been lost, the price would have jumped — nobody expected that.

StocksStocksA share in a company; the price depends on how the business is doing.In the glossary → work the same way. A company announces that its profit grew by 10%. Good news? If everyone expected 20% growth, the stock will fall. And if they expected a drop, even modest growth will push the price up.

TradersTraderSomeone who buys and sells for the difference in price and holds a trade from a few minutes to a few months.In the glossary → have a saying: “buy the rumor, sell the fact.” While the news is still expected, the price moves toward it. Once it is out, there is often nowhere left to go.