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Tips for Using Insider Data

UPDATED: March 2022

Tips for Using Insider Data – You can make smart investment decisions by looking at insider trading data and using it effectively when making your trades. When you look at insiders making trades, you can easily predict the future performance of the stock. That will give you an advantage over others in the stock market, but making sense of insider data isn’t easy. You must be willing to read between the lines and be smart with your investments if you want to profit from insider trading information.

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Tips for Using Insider Data

You must also consider that not all insider trades are equal, as there may be different reasons why insiders are trading stock. You need to differentiate between the trades and put yourself in the shoes of insiders to take advantage of their trades. We will share some tips on how you can do that and use insider trading data to your benefit. Here is what you must focus on.

1. Look at Purchases Instead of Sales

Even though insider sales and insider purchases offer investors valuable insights, research has indicated that insider purchases offer more reliable signals for trades. You can easily interpret insider purchases because if an insider is spending money on a stock, they are confident about the stock’s future performance, expecting its price to increase.

Insiders won’t take risks with their money if they expect stock prices to fall. If they are investing in a stock, they know it will perform well in the market.

2. Look at Trades from Top Executives

If the top executives in a corporation are making trades, you can get excellent insider trading signals from their trades. They have access to all the financial information about the company and will know which stocks will generate great returns on investment.

Therefore, you must follow the trades made by insiders who hold key positions in their company, as they are more likely to make successful trades.

3. Pay Attention to Large Transactions

When you analyze trades made by insiders, you must focus your attention on the size of the transaction. When insiders are confident about a company’s prospects, they will commit more money to the trade. If insiders think that a stock will perform poorly, they will sell it off in large numbers to not suffer a big financial hit.

The size of the transaction, where it is selling or buying stocks, is what will determine the type of trade that is taking place. You can make sense of insider trading data by looking at how confident insiders are at making money from their trades.

Conclusion of: Tips for Using Insider Data

Making sense of insider data isn’t easy. However, knowing the trading signals and motivation of insiders, you can make trades that are beneficial to you. Use the tips we have shared and use insider data to your advantage.


About the Author & How YOU Can Profit:  This article is the copyrighted product of the team at  .

Buyback Analytics is a Top Tier Investing Platform to help investors find, analyze, and profit from investing opportunities not found through traditional investment tools. We specialize in this simple concept:  Follow the trades of Insiders – CONSISTENTLY PROFITABLE Traders, Investors, and Institutions because THEY get Inside Information that YOU don’t:

LEGAL Insider Trading / Inside Traders (CEOs, CFOs, Corporation’s Accountants & Attorneys, Politicians, etc.)
Stock Buybacks (Share Repurchases) by Public Corporations (ie. Apple, Tesla, Netflix, Meta (Facebook), Microsoft, etc.)
Market Moving Institutions (Examples: Market Makers, Investment Banks, Stock Brokerages, Hedge Funds, etc.)

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