Buy low. Sell high. It seems like such a simple concept, but the stock market is inherently volatile and you want to gain whatever edge you can get. Giving you a leg up on all the other traders is a service called InsidersLab, which aims to provide you with all sorts of insider trading information.
As we make our way through this review, we’ll take a look at what kind of information will be made available to you, how you can capitalize on these opportunities, and whether this service is worth the added investment above and beyond the usual costs associated of playing the stocks.
What Is InsidersLab?
Maybe you’re already a day trader. Maybe you’ve considered dabbling in the stock market, but you don’t have enough information to make the educated decisions just yet. Whatever the case, InsidersLab wants to give you an insider’s edge on making money on the stock market.
The idea with this stock tip service is that you are given the ability to “track insider trading activity for SEC-listed securities.” If you keep a keen eye on what the high-ranking officials at a company are doing, you can get a better sense of whether the business is doing well or it might be slipping. If your mirror their activity, you may be able to reap some serious profits.
But Isn’t Insider Trading Illegal?
This is where it can get a little sticky. Not surprisingly, many CEOs, VPs, and other company officers hold stock in their own companies. They are also allowed to buy and sell these stocks, but they have to report these transactions in a timely matter too.
Without getting into the details (you can read more on Wikipedia), there is legal insider trading and there is illegal insider trading. With the latter, the trades are being conducted based on confidential, non-public information. That’s a no-no. Even so, just the general sense that a VP has about a company can be a good indication as to whether now is a good time to buy or to sell that stock.
Watching the Insiders Trade at Google
As an example of what you can expect from InsidersLab, they have provided an “Insiders Chart” of Google, Inc., which is publicly traded as GOOG.
This chart shows the transaction history of the execs at Google. This particular chart doesn’t seem to show a particular trend, per se, but it gives you an idea what these charts can tell you.
The green markers are when a CEO, CFO, Director, or so on buys more stock in the company. The empty red markers are when these same individuals sell stock in the company. Here is another example.
In this example, the CEO bought “millions” of shares in China Agritech Inc. and the stock price rose 1500% in the following year, shooting from around $1.80 per share to over $30.00 per share. That’s some serious profit. You just have to know where to look.
What Other Info Can I Have?
That’s just one example of the “insider” data that you can get by subscribing to InsidersLab. They have several other tools that you can use too. On the demo section of the site (which shows data that has been delayed two months), you can see things like a list of notable trades in various companies.
If one of the transactions catches your eye, you can then utilize that data to your advantage and trade accordingly. Of course, you’ll want to do your own due diligence, but that’s true of anything that has to do with buying and selling stocks, right?
Other tools include the ability to put stocks on your watchlist, getting an overview of the market, researching the backgrounds of various companies, and keeping an eye on the top 10 companies with the highest net buys. You also get weekly stock picks, insider radar, and company reports.
How Much Does It Cost?
To help you get started with InsidersLab, they have set up a 14-day trial that costs only $1.95. If you like what you see, then you’ll be the hook for the regular subscription price of $59 per month. If you’re able to make an extra $59 a month based on this insider info, then you’re obviously ahead of the game. Naturally, InsidersLab can’t guarantee that you’ll make money, because the buying and selling decisions are ultimately yours.