Dow Jones news posts insider trading a lot. Is it possible to use that information to your advantage? Most of the time those trades were executed 2+ days ago so I hardly see how its possible to use that information. Do you use these news and how to your trading desicions? Ty
Day trading this information might be useless, but buying and selling by insiders can be a guage to determine how the company will perform some months going forward. If I remember correctly there are some hedge funds out there that incorporate insider selling as a signal for stocks that could be good shorting opportunities. The general theory goes that insiders know how the company will perform therefore, if they are selling its a good idea to sell too and vice versa. The success of this theory of course depends on the speed of the decimation of this insider information. Depending on who you believe insider selling is immediately reflected in the price of the stock, but if you're in the asymetric information camp then you might be inclined to believe that the price of the stock will react slowly giving you the opportunity to get on the band wagon. -Neo
Sometimes insider transactions can be quite misleading. Often the insiders sell way too early or sell right at the bottom. These are usually career corporate execs, not the founders, so that could be the reason.