Buy the Rumour, Sell the News: What It Really Means in Trading

 “ Buy the rumour, sell the news ” is a well-known trading principle that explains why prices often move before an event and reverse after the news becomes official. Markets do not wait for confirmation. They react to expectations. By the time news is announced, prices usually already reflect it. When the event finally happens, early traders often take profits, which can cause the market to stall or reverse. This behaviour is common across stocks , forex, commodities, and crypto , especially during major economic or corporate events. What “Buy the Rumour, Sell the News” Actually Means The idea is simple. When traders expect something positive or negative to happen, they position themselves in advance . This early positioning pushes prices in one direction before any official announcement. Once the news is released: Expectations are no longer driving the market Uncertainty reduces Early traders exit their positions Price momentum slows or reverses This is why...