There are few feelings better than knowing you have an edge in the market over your fellow investors. Yet most people don't believe they can have an edge. They believe in a market where all information is available to all investors all of the time, where stocks are always "perfectly" priced. Then a bombshell comes, and suddenly, the rules are different. It could be an accounting investigation, a positive trial from a cancer-fighting drug, a huge contract win, earnings that blow away the Street, a takeover or countless other occurrences. For shareholders, these types of announcements are the holy grail for stocks. Other investors look at these announcements and wish they'd known the information ahead of time. "Someone knew," they think. Someone Did Know... In many cases, someone does know before something big is going to happen. Insiders know more about the well-being of their company than anyone else! They buy their company's stock for only one reason - they think it will go up! It sounds illegal, doesn't it? Too good to be true? It's not. It's perfectly legal, and it happens every single day. If you know where to look, you too can be privy to this type of trading information. It's called insider trading. But it's the legal type. When a company insider buys shares of their company, by law, they must report the purchase within a couple of days. That's one of the "tells" I use to decide whether an opportunity is worth taking. Again, insiders buy for one reason: They know something good is coming down the pike. When an insider buys because they know something is going to happen, they may not know the exact date it will happen, but they don't care. That's because they know the shares are going to scream higher whenever that announcement or event occurs. | 
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