Inside Scoop: Decoding Stock Insiders

You may have wondered, "Who is the real power behind the Alternative Data Stock Market?" Spoiler Alert: It's usually not the famous investors that you see on television. https://insiderbeta.com/ Enter the fascinating world of stock insiders--those folks with a front-row seat to all the action. Take a look behind the curtain to see why these people are so captivating.

First, let's clarify who these insiders are. We are talking about executives at companies, members of boards, and the largest shareholders. These are people with access to non-public information that can make or break a stock's performance. Imagine having access to a crystal-ball that can tell whether or not a company will have a stellar next quarter. They're like this.

Now, let me share a quick anecdote. Unknown to me, a friend of mine worked at a company in which the CEO of that firm bought large amounts of stock before announcing their groundbreaking product. Stock prices skyrocketed over night! Coincidence? It's not a coincidence. Outsiders are often unable to imagine how insiders have the ability to feel their company's pulse.

Hold your horses, insider trading may not always be as bad as you think. Insiders are restricted in their ability to buy and sell stocks. This is done so that they do not gain unfair advantages. Consider it like poker except that everyone is required to display their cards in certain intervals.

So why should you care about insider activity? Well, following what insiders do can offer valuable clues about a company's future prospects. If a number of top executives buy shares, that could signal their confidence in upcoming events. The opposite is true if the shares are flying off shelves. It might be time for you to change your strategy.

Humor is always welcome. Have you heard the old saying, "When Rome calls, do as Rome does"? When investing, you should "watch what the insiders are doing." The advice is not foolproof but it sure beats picking stocks by throwing darts!

Next time you are deciding which stocks to purchase or sell, look at what the experts do. It might give you an extra edge that you have been searching for.