Using Insider Trading Data to Find the Best Penny Stocks

The best penny stocks are not always so easy to find. The very nature of the penny stock market is that it fluctuates from minute-to-minute and day-to-day making it very difficult to predict the best penny stocks from those that may be mediocre or just, plain terrible.

Who Can Guide Us Towards the Best Penny Stocks?

Many so-called investing gurus will offer free or paid subscription lists to which investors may subscribe. These experts claim that they track the market and recommend the best penny stocks based on their findings. This may be legit but investors must practice a great deal of caution before investing according to the hunches or suggestions put forth by these gurus. Remember, more often than not, these experts make money by offering advice as opposed to trading what they claim to be the 'best penny stocks' themselves.

Whether you're looking for the best penny stocks or most promising blue chips, one rule usually holds true. Those with the best information tend to make better trades. And the best information is usually held by those with some blood in the game. These are the investors that know a company inside and out and whose livelihood depends on the success of their companies. Naturally, we're talking about corporate insiders.

Insiders Trade the Best Penny Stocks

If you truly want to find the best penny stocks it would be very unwise to ignore the trading activities being practiced by corporate insiders. Unfortunately, insiders for penny stock companies are not always required to file their trades with the SEC in the same manner as their blue chip counterparts but many of them still do.

The Best Penny Stocks to Buy

This is all great news for the average investor wanting to find the best penny stocks to buy. The can visit a site like and gain access to all of the information filed by penny stock insiders. Not only this but investors will also see the insider trading activity cross-referenced with a number of other criteria which helps to uncover the best penny stocks to buy or sell.

How can this information be used to buy the best penny stocks? Well, insiders my sell their stock for any number of reasons but they only buy for one. They think that the price of the stock will rise. And who would know better than them?


Reported on Sep 13, 2011

More Insider News ...