hey welcome back in this video we're going to be talking about Insider screener and how this website helps us Source trades um so basically Insider screener allows us to see exactly what exacts of companies are doing with their stock trading on their own company stock so here's a hypothetical for you if the CEO of Tesla Elon Musk bought Apple stock we would not be able to see and be aware of him buying Apple stock but if he was in the situation where he started to buy or sell Tesla stock which he is the CEO of then we would be notified because he is legally required to send information to the SEC letting us know that he bought or sold his stock and the reason why they do this which we will talk about in a bit is because there has to be some sort of Regulation with insider trading and you you can't allow CEOs and CFOs and high execs of companies trading their own stock unethically because obviously they know more about their own company than everybody else does when trading their own stock company Executives have a significant advantage over you why is that so they are in charge they know when things will happen in the business they know what the company's earnings are before they even release the earnings to the public uh simply put they are immersed in a sea of Insider knowledge and believe it or not even though the SEC does track their trading they still get away with a lot of insider trading instances because insider trading is one of the hardest criminal charges you can put on somebody because the lack of evidence because this is all happening within someone's head and that's about it I mean it's a very hard thing to charge somebody with so that's why they get away with it all the time even politicians get away with it before I show you how I use insiderscreener. com to Source trades using the insights of some of the most wealthy people in the world I want to read the introduction of our article how the SEC monitors insider trading which by the way you have access to if you go to the insider trading section you can actually find a learn more about the following subjects uh subsection and you can click how the SC monitors inside of trading so I'm going to pull that up right now okay so I I have this article pulled up and I just want to let you guys know that it is vitally important that you understand everything when it comes to dark pools insider trading news trading and any indicator that we use you need to fully grasp the idea so go to this article read it all the way through read it two three times if you have to take down notes look up any stock terminology you do not understand there's going to be so much terminology that you've never heard about you need to study this stuff the videos that we're creating for you yes you could fly through them probably just in a couple hours but you won't understand fully what is going on all of the information we're bringing to you should take days if not weeks to just fully understand and learn what all of this entails so I'm going to read the first two paragraphs here and kind of explain exactly how the SEC monitors this kind of stuff and then we will jump into insiderscreener. com and I'll show you how to implement our strategy into researching and getting into your own plays alright so despite popular belief insider trading is not always prohibited when corporate insiders such as company directors officers and employees purchase or sell shares of their company in accordance with security laws and regulations this is considered legal insider trading and like I said it is super hard to pinpoint someone down for legitimately using insider trading it happens all the time and they just let it slide under the rug because it's so hard to convict somebody of insider trading when when it's all happening just inside their head okay there are no Witnesses it's not like a murder okay it it's so hard to convict somebody of insider trading that's why not a whole lot of people get convicted of it but they do it such legitimate Insider trade writing must be reported on specific forms within the allotted time frames to the U.
S Securities and Exchange Commission this is the same place where politicians have to send off their disclosures of stock trades the SEC and we're going to get into the whole time frames because if you are aware politicians have 45 days to submit their trades how many days does a CEO have okay we'll get into that it's very interesting stuff I'll get into it here in a second but the form of insider trading that grabs attention is when someone trades illegally while in possession of material non-public information such insider trading cases are aggressively pursued by the SEC to ensure that there are no unfair advantages in the Capital Market otherwise widespread insider trading could undermine public confidence in the market and prevent it from operating properly no one is above the law if they engage in such illegal activity as demonstrated by the sec's victories and cases brought against prominent people like Martha Stewart and rajat Gupta and former Global head McKenzie so those are just some examples that I thought of to put into this article and as you read you will basically see those examples of how they got caught and why it happened and how the SEC found them okay okay so very useful article to read about and like I said again look up any stock terminology you do not understand or don't recognize you have to understand all of this stuff before getting into the actual sourcing of Trades so I mentioned before that politicians have 45 days to disclose their stock trades it is much different for insiders of a company such as CEOs or CFOs or any high up execs at a company it is much different so I pulled up the sec's PDF file here it's called Insider transactions and forms three four and five the only one we're going to be looking at is form four which is the one that really matters because it explains how much time these insiders have before they have to uh disclose their trades so so in most cases when an Insider executes the transaction he or she must file a form four with this form filing the public is made aware of The Insider's various transactions in company Securities including the amount purchased or sold and the price per share form four must be filed within two business days following the transaction date okay so this says within two business days if they file it on Friday that means they have all weekend until Monday to file this so the maximum stretch that they have is like four days until we see this information that's not a lot of time which is good for us which means we can see almost in real time we can see what these CEOs and CFOs are doing with their own stocks and there are a lot of examples of insider trading going on I'm going to pull these stocks up on insiderscreener. com and we are going to dig deep and hopefully you guys will learn and understand how I even conduct This research okay when you are on the front page of inside a screener this is what it will look like at the top here you can actually search for a company let's just say Tesla for example okay look up the ticker you can look up Tesla Inc and it'll pop up and this is how you can actually search up a stock that trades publicly on the New York Stock Exchange in fact I believe they do all exchanges here they track the information for all of them but the US really is the only one that we're going to be wanting to look into so something that I do in order to find and Source a new trade to get into is I will go up here and click this screeners section this is actually a new section so you can go ahead and click this and what I look into is top cluster buys and top cluster cells okay so let's go ahead and just we'll get we'll pull up an example here so let's go to top cluster buys let's limit this to just the United States which we already had selected by the filter and then we've got the top cluster buys um you know happening in the in the stock market um with the insider trading and you can actually subscribe to get the full access to these screeners but I have another website that actually does this for free and I will show you towards the end of the video what that website is but it's only six dollars a month um to have the convenience I guess so if you did want to do that you go you could go ahead and do that but let's just click one of these so we can get a better idea of what's going on here so when you search up a trade this is MCB it'll pull up the stock price and then it will also show a bunch of Green Dots and a bunch of red dots it's very self-explanatory red means sell green means buy so insiders CEOs CFOs are buying at this dip right here the stock plummeted this is a banking stock so if you're watching this right now and you're aware that in March of 2023 Bank stocks collapsed uh you had Silicon Valley Bank collapse and you had Signature Bank collapse they literally went bankrupt all Bank stocks uh went down in price very fast and you had a lot of insider trading and the reason why they're probably not getting you know penalized for this this buying spree right here is because everybody knew that Banks were going through a tough season in that period of time and the stock price was super cheap so why not buy some more of their own company now there were some examples if I can find it s-i-v-b this is actually Silicon Valley Bank let's pull this up here's where it gets very interesting because after the fact after they went bankrupt and stock literally went to zero uh the the Insiders the CEOs and I think they're getting tried on this right now but they were selling their own stock just a couple days before all this news came out they knew they knew that they were going under so I wanted to bring us back to this chart because sivb there probably was a low chance that you were going to pick up on any you know insane uh insider trading and the reason why is because you want to see a huge clump of buying or selling because that means a lot of insiders in the company have an intuition about what the future holds okay so the intuition right here is this stock is going back up it's a cheap price let's get in now it's it's obviously not going to sustain at these levels for very much longer let's get in right now so something that is cool with this insiderscreener. com is once you search up a stock you'll have the usable chart here but you can also scroll down and oh this looks cool you have kind of like a spreadsheet almost you have the notification date the transaction date at which they actually you know place the trade you can see the transaction type was a purchase was it a sell okay so looks like all this is the cluster buy that we saw all these people are buying you can see exactly who you can see the CFOs the CEOs look this is the CEO right here DeFazio Mark R oh here's the CFO sturgist Greg okay you can also see how much money was transacted so uh just for instance this last trade he he bought almost thirty six thousand dollars worth of worth of his own stock you can see at what price he bought and you can also see how many shares he increased or decreased in his own personal share size of his company so he ended up buying a thousand shares of this stock which increased his overall investment in the stock by 7.
8 percent so it's very cool because that is actually very important is you might have a CEO and I'll even pull up an example right now of Tesla stock so you can see Elon musk's trades within his own company okay so if we scroll down here and you'll start to understand what I'm talking about here in a second is see Elon Musk he's selling a lot of his stock look he sold 209 million dollars of his own stock that sounds like a lot that wasn't even one percent of his of his investment in Tesla so disregard that number that doesn't matter what not what matters is this little percentage here if you have a CEO selling off 50 of his shares of his own stock that is saying something that's saying like this guy does not believe in his own company right now we probably should get out of this or place puts but when when Elon Musk sells this much money out of his own stock but it's it's not even a percent of his portfolio size that doesn't even matter that'd be like owning a hundred dollars of Tesla stock right now and you just sold 50 cents that's not a huge indication that okay this guy does not really believe that this Stock's going down he's probably just trying to get some money out of the stock market you know so you got to take this stuff into consideration and really dig deep and understand um you know what these people are are thinking now another thing and I just noticed uh this says major owner so not only is Elon Musk the CEO which will automatically put any transactions he's got right into here but also any major owners this is talking about institutional investors so people that aren't even a part of a company just because they own a large portion of the company through the stock market they also have to be reported here too so any any major owners will also be thrown into the mix and you can see what they're doing on on inside a screener which is a really cool feature I'm glad they added that in there so now that you have a clear understanding of what I look for on inside a screen or to source of trade I have four examples I want to go through so hopefully you have an even better understanding of of what we do here so MCB stock is one that I found it is another it's a bank stock and actually now that I pull it up this is the first example I gave you guys but I'll go over it just again very briefly we saw this Clump buying going on here that is a huge indicator of these people believe that the Stock's undervalued that it's not going to stay at these levels for very long it cannot be sustained maybe we should get into calls you know this Clump buying started at the very bottom here you had days not weeks days to decide if you wanted to get into calls on this one okay let's pull up um iot stock this is another one I found just the other night um so this is one that I would avoid typically the stock price is going up yet they've been selling all year this here is probably an indicator of this stock overall is overvalued just like we saw with Tesla it was like all selling the entire year all of it was selling so there's no Clump buying going on there's not a huge massive Clump in one area where there was a ton of buying or selling and also another thing that I forgot to mention was let's just say there's no there's nothing going on here there's nothing going on here but you just had a little clump of of selling going on that that might be something when a corporation when the Insiders have never sold or bought their stock for years or a year at least and then out of nowhere they just start buying or selling their stock okay that might be an indicator because they're used to not doing anything but now suddenly oh there might be something really good going with their company okay they just got a huge new client that nobody knows about they have a lot more income coming in so their next earnings report is going to be insanely good or it's going to be really bad just like as just with svib you know their bank they knew that they were going to go bankrupt so they're the Insiders they were selling the stock before it even lapsed so you just got to look out for these things and a lot of it is going to be just common sense a lot of it is going to be thinking with your with your own head like your critical thinking skills will be on Peak when using this strategy it's it's not just sit there and you you plug in some numbers and then the chart moves and then it tells you when to buy one to sell that is never how this strategy will be so I'm sorry if you thought that's how it was going to be but it's not it's all about critical thinking skills and understanding the marketplace and over time as you research plays and watch it how it plays out by getting into calls or puts and just kind of just playing around a little bit you'll start to understand how the marketplace Works it'll actually change the view on how this how the stock market works and how Economics work in general you'll start to understand how everything's working guys okay this is the best way to to understand this type of this type of stuff okay another example okay let's pull this at v l y so this is another great example um you can see here that over the course of like the entire year there was there was one instance where somebody bought shares and then out of nowhere we have insiders left and right buying shares basically all in the same day all on the same day okay and now some of you might be thinking okay well they all bought shares right here but the stock is still going down what what does this mean like it aren't isn't it supposed to start going up because they they obviously have Insider information you also got to understand these people they know stuff about the company that isn't going to happen for the next couple of months maybe their earnings didn't come out yet and they have three more months until earnings come out really good numbers and they bought three months ago because they don't want to seem super sketchy when they when they do this stuff you wouldn't want to buy your own stock the day before earnings and then it's insanely good you'd rather buy three months prior to earnings coming out and then they'd be becoming you know insanely good earnings okay so the more you look into this strategy the more you'll understand that they they are trying to time this stuff perfectly because they don't want to get caught obviously okay let's pull up one last example and this is actually a trade that we got into today as I'm recording this video we got into this one okay so the first thing that I notice when I look at this chart is there's a large cluster of selling going on all in the last couple days all right let's go ahead and just take a look at these people and like I was just explaining this is going to be this is gonna be mind breaking for you guys because this is exactly what I was talking about stuff you need to look at this is the chief technology officer there's a non-executive director there's there's always people selling their own stock this guy dropped his position size by 27 million dollars which if you think about it Elon Musk level that would be nothing but this guy sold out of half of his position in his own stock in one day okay and then he he further reduced it again this guy's like dropping all of his shares he's trying to get out completely okay so that is a huge indicator when when you have an Insider selling almost all of his shares in one Clump altogether there is there is something to be said there there's something going on that that we don't know about and he is getting out maybe he's scared maybe he's not so sure about his company you know anything any literally anything but we won't know for sure until months later when the news comes out but huge clump of selling guess what we bought puts all right and I can't tell you how that trade ended up going um but obviously there there were other uh indicators hitting on on the trade desk and that is also why we pulled the trigger uh in most cases we would not pull the trigger on you know insider trading like this when this is the only indicator hitting we need at least two indicators that's including the dark pools this indicator here on inside of screener um news trading and politicians trading those are the four main indicators that we use and we want at least two of them to be hitting um it's really good if all four or three of them are hitting but in most cases we will not use just one indicator um to go with our trades the last website that I want to let you guys know about when it comes to insider trading and which by the way you've probably heard of quiver quantitative before um they're on Instagram and Tick Tock and they make lots of videos and stuff and they have a huge following their product is really good okay they've got information on basically everything so this could be your go-to um I wanted to make videos on separate websites for all of these strategies so that you would have more options because I don't want to have one website relying on everybody's research because what if quiver Quant goes under what if they're gone what if their website disappears then our whole teaching lessons all of it all of it's gone okay but they do Congress trading they do government contracts which is another one um a pretty good indicator if you really know what you're what you're looking into we don't really use it very much um and then corporate lobbying the the reason of this video is to look at insider trading so I'm getting ahead of myself here so insider trading so if we click this and you scroll down it's right here the the first thing you can see and this is all happening in real time you know like I said within that two day to four day window we can see April 5th that's today um and it's all the recent insider trading activity okay and another thing is the 20 largest recent purchases in sales most of this is going to be your clump buying which is what we wanted to look into now it's it's kind of iffy when it comes to quiver Quant they don't let you filter it to Clump buying only they only show you the 20 largest recent purchases that could have been Elon Musk selling 200 million dollars worth of his own stock and he would probably be up here at the top okay so that that is a reason why Insider screener is slightly better when it comes to the insider trading dashboard on their website it's just better because it's it just is better because you can filter it to the clump buying specifically which is what we use um but this is a good website to Source a new trade so for instance if you found one on quiver Quant rcg you would take that and you would look up rcg and you can look at it on Insider screener and it goes a lot more in depth wow it's insane so obviously these people probably think their stock is extremely undervalued keep buying it but anyway that's that's what I'll do I'll go on quiver Quant I'll even look up on the news like I'll look up this term exactly like insider trading or CEO buys lots of his stock phrases like that just look him up on Google and you will find something and then you'll get a lead a lead is like you find a stock like rcg and then you'll look it up on here do some research oh it doesn't hit the indicators aren't hitting there's not a whole lot of Clump buying going on then you just you know rinse and repeat find the next one so honestly going to the screeners here buying this for six dollars a month probably will save you a lot of time okay and we're not affiliated with Insider screener we're not getting affiliate deals with these people so I'm not trying to sell you on this I don't even have it because I just use other things like quiver Quant it's just maybe a little bit more work whatever but for the convenience six bucks a month literally nothing so if you guys do want to invest into that you can start doing your own research and have it all right here your cluster buys and your cluster sales very simple very easy way of sourcing a trade very so just for a recap it takes two to four days for a CEO CFO any Insider execs at a company to disclose their stock trades unlike the 45-day period which politicians have to disclose their stock trades all right when a large clump of execs buy or sell stocks at the same time that is a large huge indicator that they might know something that we don't all right and you can play off of that we've done it multiple times been successful most of the time when you find a clump by let's just say yeah they're buying the stock and then you find the dark pools hitting and the large institutions trading within the dark pools also have a bullish sentiment on the stock okay there's two indicators hitting right there why not just get into some calls because there's a lot of insiders that I think this stock is going up and these people have information nobody else has trust me so that's going to be it if you guys have any questions whatsoever please we have the help chat box in the bottom right corner of your screen click it send us your your questions your anything we will be happy to respond and give you the best answers possible so you can have a clear understanding of how to use this strategy and over time even if you master this strategy and then every once in a while you run into a problem even a year from now after you got this off after you got the service and you ask us a question that's fine we will answer any questions and also if this strategy changes over in the future like if for some reason politicians ban themselves from Trading stocks which could happen at some point we would make an update we would find another way to Source trades there would be another method that we would figure out we would make videos on it and we will consistently update these videos uh if something does change with the websites if the whole interface changes with Insider screener I will delete this video and make a fresh one okay so this isn't like you just bought it and this is all you got so we are on call 24 7.
