Tuesday, March 19, 2019

Riding on the shoulder of a Giant - Making money on Insider Buying

I happened to come across an article with TradingPub.com entitled "Piggybacking Hedge Funds for big profits". The article is really very interesting and also supports the idea mentioned in the article of Investopedia.com which was titled "Buy stocks with Insiders: How to track Insider buying." Definitel, a surge of volume associated with Insider buying of which public documents show that Big Institutions are accumulating shares of a particular stock or company could mean a lot for an ordinary trader or investor. To be able to catch this move and ride with its momentum is a big winning strategy. It is like "Riding on the shoulder of a Giant."

The best way to do this is monitor stock volume surges and price movement and look at tools that will provide you with the data you are looking for whether a company is under accumulation. Under the Securities Commission laws, any public company listed in the stock market in the US except those traded over the counter should file a public document concerning insider trading. Sec Form-3 is for initial ownership, Sec Form-4 is for any changes of that ownership, Sec Form-5 is for any other changes not recorded in Form-4. This forms can be accessed through the following online tools:

1. Sec.gov under Edgar Search Tool.
2. otcmarkets.com - You have to enter the stock ticker into its Quote field and press enter. Then once the stock is listed, you have to click on "Disclosure" from the menu which starts with "Overview | Quote | Company Profile | Security Details | News | Disclosure | Research". This will bring up the list of Forms associated with the company you are searching for. What I like with otcmarkets compared to Edgar Search tool of Sec.gov is that when you click the hyperlink it opens right away as another tab or window in your browser with the documents listed as one which you can scroll all the way down, instead of selecting one by one as with Edgar.

For more Insider trading details you can use the following tools.

1. Finviz.com provides a very good list of insider trading. Although, not all companies might show the Insider trading.
2. Insidertrading.org - This site is reported to be listing this insider trading too. But I found it very hard to search for specific stock.
3. GuruFocus.com - This site has some cool features and one of which is the Insider trading. But the listing of the Insider Trading can only be accessed for Premium members which will cost you $449.00 US per year. They usually give you 7 days of free access.
4. j3sg.com - This site can get you insider listing right away, just by signing up with their free membership. 

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