The Insider Buying Strategy

 

 

Not all insider buying is the same.  There are certain signals to look for that makes some insider transactions more significant than others. 

 

- Huge Insider Transactions.  If an insider is willing to sink millions into a company they probably know something we don't.

 

- Multiple Insiders are buying.  When the whole management team is buying this is a signal they think the company is going to do well in the near term future.

 

- Hedge funds are buying.  You can search by the name of a hedge fund or the managers that run them. 

 

- Insider buying near a 52wk low or support level helps solidify a possible good entry.

 

- Insider Selling doesn't tell us too much, as insiders can sell for many possible reasons.

 

- Using simple technical analysis with insider buying improves your odds.