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Using Insider Trading in Your Investing

UPDATE: March 2022

Using Insider Trading in Your Investing – One investing tool that’s commonly misunderstood by investors is insider trading. When used appropriately, it’s extremely helpful for investors, but that’s easier said than done. There has been a sudden surge in the number of insider trading activity happening on the stock market. This is a clear indication that insiders are becoming more optimistic about market prospects and the performance of their company’s stock.

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Using Insider Trading in Your Investing

Insiders generally have more knowledge than others about how well the stock of a company will perform. Therefore, it is a good idea to keep track of insider trading activity if you want to benefit from investment trades in the stock market. As insiders need to report their trades to the SEC, this gives ordinary investors the opportunity to access that information and keep an eye on insider trades. It is understandable that if insiders are selling company stock, they think something negative will happen. When they are buying company stock in numbers, they are optimistic about its prospects.

In general, insider buying is more predictable than insider selling, as you stand a better chance of understanding why insiders are buying stock. It can be difficult to identify the reasons why insiders are selling their stock, which is what makes things complicated. Using insider trading information can be helpful, but it can also not provide you with the results you want. When used properly, this information will provide you with solid evidence on when you should buy or sell a stock.

1. Keep An Eye on Insider Trading in Stocks You Own

When insiders suddenly start buying a stock that you currently own, it is a strong signal that there is very positive news going to come out about the company soon. This signal may change your approach towards that stock, and you may think about investing more in that stock to get the maximum benefit. Before making a decision based on insider trading, you should carefully consider who is doing the buying and how much they are buying in the trade.

2. Find Stocks for Investment by Using Insider Buying Information

When deciding to buy the stocks in a company, you shouldn’t solely be relying on insider buying information like that can mean several things. This information is merely an indicator that something positive might happen in the future. That means you should carefully analyze this information and make sure that the potential investment meets all the criteria for your diversifying your investment portfolio. Most investors who only rely on insider buying information when finding stocks for investment will end up not reaping the benefits because they didn’t study the stocks carefully.


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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