According to Ross Givens, one of the most profitable ways to trade stocks is to follow insider trades by copying the purchases of a small handful of CEOs, CFOs, board members and the like who suddenly start buying tons and tons of their own companies’ stocks due to their private knowledge of yet to be announced sales growth, upcoming product or service launches, major new customers, new executive hires, recent legal resolutions, imminent FDA drug approvals, new legislation/federal permits, and/or approaching mergers/acquisitions.
The secret to these insiders’ investing success is simple—they know of phenomenal things about to develop that virtually no one else is aware of—a clear advantage they have over everyday investors that they use to get filthy rich.
Look at the data and you find that their track records are perfect. They buy the lows in the form of large blocks of stock just before major moves to the upside and then sell the highs six months or more down the line, making money 100% of the time. These elite insiders never experience a losing trade!
Such sudden monster purchases by some corporate insider somewhere occur on average three to four times a month, so if you have the time to go through every filing of Securities and Exchange Form 4 listed each day to discover the major purchases which cannot be attributed to stock options, routine purchases or actively traded funds, you have yourself a means of making some rather amazing wealth generating stock purchases with the potential to propel you into a whole other tax bracket within a single year.
