How to Interpret Insider Trading Signals

Tracking what corporate insiders do with their own company's stock is a classic strategy. However, not all insider trades are created equal.

The Golden Rule

"There are many reasons an insider might sell their stock (buying a house, paying taxes, diversification), but there is only one reason they buy: they think the price is going up."

What to Look For

Cluster Buying: When multiple officers or directors buy stock within a few days of each other, it's a strong signal.
Size Matters: A $10,000 buy from a CEO who makes $5M a year is noise. A $500,000 buy is a signal.
Open Market vs. Options: Focus on "Open Market Buys" rather than automatic option grants or exercise. An insider taking money out of their own pocket to buy shares on the open market is the highest conviction trade.

Use the Fin10x Insider Trading page to track these movements daily.

How to Interpret Insider Trading Signals

Tracking what corporate insiders do with their own company's stock is a classic strategy. However, not all insider trades are created equal.

The Golden Rule

"There are many reasons an insider might sell their stock (buying a house, paying taxes, diversification), but there is only one reason they buy: they think the price is going up."

What to Look For

Cluster Buying: When multiple officers or directors buy stock within a few days of each other, it's a strong signal.
Size Matters: A $10,000 buy from a CEO who makes $5M a year is noise. A $500,000 buy is a signal.
Open Market vs. Options: Focus on "Open Market Buys" rather than automatic option grants or exercise. An insider taking money out of their own pocket to buy shares on the open market is the highest conviction trade.

Use the Fin10x Insider Trading page to track these movements daily.