Insider Trading – How to benefit from the information?


The Indian stock market has gone through a tremendous re-rating and turmoil. Stock prices have nosedived and the pandemic has only made it worse.

In times like these, what would you make if promoters were buying their own stocks? The naysayers would look at it and say that the promoters were only trying to shore up their own stock prices. However, prudent investors would look at this as an opportunity for buying as promoters themselves feel that their stock is undervalued.

What if you had access to this buying or selling by the people in the know? Wouldn’t it signal an opportunity to buy or sell? Wouldn’t it be great to have a tool which could collate all this information and give it to you at one place?

Introducing the Insider trading tool from StockArchitect. This tool gleans through the different filings of promoters with the exchanges and also from different sources to arrive at a structured output for the stocks in which promoters have bought or sold. It displays the trends over the last 3 months, 6 months and 1 year.

Users can click on the name of the stock to get a detailed analysis of the trades that have taken place. Users also have the choice to click on the name of the promoter / investor / company and look at all deals executed by that individual / entity.

The data is updated on a real-time basis, as and when it is submitted to the exchanges.

We also have Stocks on the Radar – This is a list of stocks detected by Artificial Intelligence based algorithm where genuine buying from the promoters is happening.

The information is by no means a recommendation to buy or sell and should not be treated that way. Users are advised to make informed decisions and consult their financial advisors before making any investment decision. StockArchitect is not responsible for any gains or losses made by the users of the website in any manner.

The Insider Trading Tool is available for a small fee which is less than what one spends on one cup of tea. And there is a free 7 day trial period as well.

Visit https://stockarchitect.com/tools/insider_trading now and avail of the benefits.


Reblog: 4 Types of Trading Signals


Quantified trading signals can be based on different types of strategies. Some buy high in the hopes of selling higher, while  others try to create a great risk/reward ratio by buying low hoping to sell on rebounds or reversals in price action. Here are four different types of trading signals.

  1. Momentum signals are based on buying strength. Momentum traders wait for a strong move in a stock and then buy and get on-board for a short amount of time. Momentum traders usually trade short time frames of days. These work primarily in bull markets.
  2. Breakout signals are based on buying all-time highs or 52 week highs, trying to buy high and sell higher. Breakouts are bought trying to catch a parabolic move where a stock could double or even triple over weeks and months. These work primarily in strong bull markets when indexes break to all-time highs.
  3. Buying oversold dips are based on buying a long term price support level or an oversold oscillator like the 30 RSI, a price extension far from the 10 day EMA, or a -80 to -100 $NYMO. This signal tries to create a great risk/reward ratio based on buying a deep dip of a historical price range. These work best in range-bound markets.
  4. Trend following signals try to go in the direction of the long term trend by using long term moving averages like the 200 day SMA breaks as buy or sell signals, or all-time highs or lows to enter longs or shorts. These work in trends with higher highs or lower lows.

The original article is authored by Steve and appears on New Trader U. It is available here