InvestorQ : What do I need to watch in insider trades and knowledge trades?
Siya Saran made post

What do I need to watch in insider trades and knowledge trades?

Radhika Arya answered.
3 years ago

The beauty about watching the insiders is that it is smart and perfectly legitimate. You are just taking adequate care to protect your interests so that another insider, who is better informed than you, cannot cock a snoop at you. Remember, watching the insiders is done entirely with publicly available information and the various filings that are required by law. It just takes that little extra effort on your part. The truth is that it can make a substantial difference to your investment performance.

Inside trades are important if you know how to look at them. Don’t just replicate or ape insider trades; that are a sure short way of losing money. You must actually take cues from these insider trades, despite the availability of a mountain of public information, there is hardly much effort to decipher its true meaning. The solicitor knows about a legal battle the company is going to win. The auditor knows about a qualified audit report that is going to be issued. The employees know about functional and organizational issues. The promoters know what is next. The institutions have the best ringside view. There is absolutely no harm if all this benefits you. Insider trading by the insiders is illegal but as an investor you can always take cues from what insiders are doing. That gives you a drift.