Everyone knows that insider trading is illegal, but do you think that keeps it from happening? Of course not. Just because you’re not allowed to trade on insider information doesn’t mean you can’t trade on the telltale signatures that insider trading activity leaves. This can be quite profitable if you can detect it in a reliable way.Some tools are very useful in detecting insider trading. For one, most of the better discount brokers aggregate the news for you. Be sure to use this valuable feature. Having scanning software that filters for price moves on volume is also vital.You can suspect insider trading is going on when you see a strong price move in the stock picks you’re monitoring on increasing volume with no news about those stocks. This is the key to detecting insider trading. If the price goes up suddenly on good volume with no news, you really need to ask yourself “Why?” One possible explanation is insider trading.To detect these strong price moves you should have scanning software that filters for price moves on volume. These scans should be run a number of times daily, focusing especially on early in the day. It’s also important to know that… Read full this story
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