Profit from Insider Trading

Following the insider purchases could be very profitable. No one knows the company and the sector better than the insiders of the company.

The following represent good hints and traps of using this information.

• Ignore most sales as insiders sell the stocks for different reasons such as diversification, buying a mansion, divorce settlement, etc.
• Only consider sales if insiders are dumping most of the owned stocks. In this case, you want to short the stock.
• Consider the net purchases (= Total...