Someone in the community asked recently how we can track insider buying and selling. Actually It is one of the few edges left for us retail investors. Insiders have a massive information advantage, and while they can sell for many reasons (taxes, divorce, buying a boat), they only buy on the open market for one reason 🙂 they think the stock is undervalued
I put together a breakdown of the specific tools I use to track this:
- The Source: All data comes from SEC Form 4 filings.
- The Tool: I use OpenInsider to filter for "Cluster Buys" (when 3+ insiders buy at the same time).
- The Trap: Ignore option exerises. Only look for open market ourchases. You want to see them reach into their pocket, not just receive a bonus.
I wrote a full guide on how to filter this data and what specific red flags to look for. I can share if interested
How to track insider trading (and why it beats analyst ratings)
byu/SplitTrick3118 inStockMarket
Posted by SplitTrick3118
2 Comments
I would like to learn this strategy if you dont mind.
Yes please, looking at the site now and would appreciate your wisdom