How to Recognize the Best Insider Signals
Editor’s Note: Today’s article comes to you from co-founder and Head Fundamental Tactician of Monument Traders Alliance Karim Rahemtulla, who has big news…
He’s launching a new trading research service, Insider Matrix, in which he identifies a specific set of buys by tracking where multiple insiders are putting their own money.
One of these calls could have led to gains of as much as 2,250% in just two weeks!
– Kyle Wehrle, Assistant Managing Editor
There are few feelings better than knowing you have an edge in the market over your fellow investors. Yet most people don’t believe they can have an edge.
They believe in a market where all information is available to all investors all of the time, where stocks are always “perfectly” priced.
Then a bombshell comes, and suddenly, the rules are different.
It could be an accounting investigation, a positive trial from a cancer-fighting drug, a huge contract win, earnings that blow away the Street, a takeover or countless other occurrences.
For shareholders, these types of announcements are the holy grail for stocks. Other investors look at these announcements and wish they’d known the information ahead of time. “Someone knew,” they think.
Someone Did Know…
In many cases, someone does know before something big is going to happen.
Insiders know more about the well-being of their company than anyone else! They buy their company’s stock for only one reason – they think it will go up!
It sounds illegal, doesn’t it? Too good to be true?
It’s not. It’s perfectly legal, and it happens every single day.
If you know where to look, you too can be privy to this type of trading information.
It’s called insider trading. But it’s the legal type.
When a company insider buys shares of their company, by law, they must report the purchase within a couple of days. That’s one of the “tells” I use to decide whether an opportunity is worth taking.
Again, insiders buy for one reason: They know something good is coming down the pike.
When an insider buys because they know something is going to happen, they may not know the exact date it will happen, but they don’t care. That’s because they know the shares are going to scream higher whenever that announcement or event occurs.
Not All Insider Buying Is Equal
What I look for is that first insider to buy – and buy in bulk.
This means they are buying thousands of shares on the open market with real money.
This real money has to be in the tens if not hundreds of thousands of dollars.
The buyer should be an executive at the company, not a director.
They’ve got to earn their money.
The next thing I look for is at least two more executives buying shares on the open market – again in bulk and at market prices, preferably higher prices, chronologically.
Then I want to see some director buys.
In all, I want to see at least five insiders buy shares in bulk before I look at the company.
If there are only three or four, I still want to see a lot of shares moving and a lot of executive participation.
I am not interested in waiting years. Most insider trades that meet the metrics I look for come to fruition in a year or less. Those are the ones I will be focusing on in my new Insider Matrix trading research service.
Action Plan: There are few feelings better than knowing you have an edge in the market over your fellow investors, and trust me, you can have an edge.
Insider cluster buying signals are incredibly powerful when you know what to look for. I’ve followed them to a 92% win rate in the past. And I plan to keep it up in my new trading research service, the Insider Matrix.
I’m tracking the insider trading networks every day the market is open and following the money to winning trades in REAL TIME.
I’ll alert members when I see an insider buying signal and give the exact trade to best profit from it.
No need to sit at your computer and scan through webpages all day thinking, “Someone knows.” Be the one who knows. Join the Insider Matrix.