Man (and woman) does not live on FX alone…

Here’s one for the equity traders.

  • New research suggests that closely following the trading patterns of corporate insiders—who are allowed to buy and sell their companies’ stock during certain time windows—may help outside investors earn big returns.
  • There may be a positive side to the information advantage held by insiders
  • Investors hoping to profit from the trading of corporate insiders should focus on the right type of trading and the right corporate insiders.
  • S&P Capital IQ tried to identify “informative” insider trading by looking at three categories of trades by corporate insiders: opportunistic, intensive and change-of-direction

The article is non-gated at a Wall Street Journal blog and is worth a read, especially where it explains three categories of “informative” insider trading: Benefits of Studying Insiders’ Trading Patterns