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Looking for Good Stocks? Follow Big Trades and Check for Holding Percentage Changes

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When looking for good stocks common sense will tell you that the more money insiders are trading the more significant the transaction. When a company catches your attention, it is a good idea to start your research with the larger transaction values first.
 
The importance of the relative size of an insider's purchase should not be downplayed in favour of the actual dollar value of the trade. Most insiders are not chairmen with multi-million-dollar bonuses. The average vice president and chief financial officer at a company may make a comfortable living, but for many a $10,000 trade is still serious money. The transaction value may look puny beside all the other trades you see on a given day, but it doesn't mean it isn't significant.
 
One should give more credence to the 5,000-share purchase by a vice president if it doubles his total holdings compared to a 50,000-share purchase by a chairman who may have millions of shares. The vice president's investment many very well represent a larger share of his net worth and when insiders invest in this manner, the rest of us should be aware that we may be looking at good stocks in which to invest.
 
Do you know you can use the Research Tools compare the aggregated total trade amount and holding changes of each company insider?
 

 

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InsidersLab.com focuses on tracking and monitoring insider trading activities in the US stocks market. "Insider Trading" means trading activities created by company directors, senior officers, individual substantial shareholders, and institutional shareholders. InsidersLab.com does not represent, warrant, nor endorse the accuracy, reliability, completeness or timeliness of any of the information, content, views, opinions, recommendations or advertisements (collectively, the "Materials") contained on, distributed through, or linked, downloaded or accessed from any of the services contained on the website (the "Service"), nor the quality of any products, information or other materials displayed, purchased, or obtained by you as a result of an advertisement or any other information or offer in or in connection with the Service (the "Products"). InsidersLab.com collects insider trading information from different public sources such as newspapers, financial information websites, and government statistics publications. You hereby acknowledge that any reliance upon any Materials shall be at your sole risk. In particular, none of the Materials is provided on the InsidersLab.com website or emails with a view to inviting, inducing or encouraging any person to make any kind of investment decision. Securities or other investments referred to in the Materials may not be suitable for you and you should not make any kind of investment decision in relation to them without first obtaining independent investment advice from a person authorized to give it.