Insider Trading Reports, a great resource to help you make money trading stocks

I think I have discovered a great trading strategy that that I don’t think everyone knows about.

In this blog I would like to share the strategy.

At this point I can honestly say that the strategy has not made me a lot of money but I haven’t been practicing the strategy for that long.

The idea of this strategy just makes a lot sense and if you are interested to trade stocks it is definitely something to consider.

Ok, well what am I talking about?

In the last few weeks I have been looking at an Insiders Trading report that I receive in my inbox everyday and please note as a disclaimer that even if you follow this strategy it is important to do your own research and possibly consult with a financial advisor before making any investment decisions. With that in mind, let’s discuss how to take advantage of published reports about trades by officers of public companies to buy and sell stocks.

The Securities and Exchange Commission (SEC) requires officers and directors of public companies to file Form 4 reports with the agency within two business days of any transaction involving their company’s stock. These reports are publicly available and can provide valuable insights into the buying and selling activities of insiders.

One way to use these reports is to look for trends. Pay attention to the frequency and volume of trades by insiders. If several insiders are buying or selling significant amounts of stock over a short period, it could be a sign that something is going on with the company. For example, if multiple insiders are buying shares, it could indicate that they believe the stock is undervalued and that good news may be coming soon. Conversely, if several insiders are selling shares, it could indicate that they believe the stock is overvalued and that bad news may be on the horizon.

Another strategy is to focus on the size of the transaction. Insiders who buy or sell large amounts of stock are often more knowledgeable about the company and its prospects than those who make smaller trades. Therefore, a large purchase by an insider could be a bullish sign for the stock, while a large sale could be a bearish sign.

It is also important to pay attention to the context of the transaction. For example, if an insider sells a small amount of stock to pay for a child’s education or to buy a house, it may not be a signal that the company is in trouble. However, if an insider sells a significant amount of stock and doesn’t provide an explanation, it could be cause for concern. Having said that, generally these reports do not disclose that type of information.

Finally, it is important to keep in mind that insider trades are just one factor to consider when making investment decisions. Other factors to consider include the company’s financial performance, industry trends, and macroeconomic factors.

In conclusion, published reports about trades by officers of public companies can provide valuable insights into the buying and selling activities of insiders. By paying attention to trends, transaction size, context, and other factors, investors can use this information to make informed investment decisions. However, it is important to do your own research and as mentioned if you are a novice to the stock market seek advice from a financial professional before making any trades.

Having said all that, imagine if you see someone like Warren Buffet or his company, Berkshire Hathaway buy a hundred million dollars or more of a particular stock, it can only mean one thing, that he thinks the price of that stock is going up.

As I read somewhere before people can sell stock for any number of reasons but they will only buy stock in a company for one reason,  if they think the stock price is going up.

Furthermore when someone Like Warren Buffet buys, imagine all the information that he is privy to about the company.

To get your Free Insider Trading reports go to J3SG and sign up.

Something to consider!

 

 

 

 

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