Don’t trust people, trust their greed

Sean BowerIt’s hard to know who and what to trust on Wall Street. Everyone is just trying to get the upper hand to make a few bucks, and most people are more than willing to walk on your back to do so.

That’s why I tend to trust the people who don’t know I’m watching them, and who are willing to spend millions of their own money to make a profit.

I’m trusting their confidence because of this…

You probably know that a form of insider trading is illegal. However, not all insider trading is, and the criminals hardly ever get caught because it’s so hard to prove.

With that being said, those who do get caught face serious jail time, and that leads many people to ask why company insiders continue to participate in insider trading.

To be short, they continue to do so because it’s so profitable…

A new study from Kenneth Ahern from the University of Southern California Business School shows that investors earn an average of 35% gains when they trade on an illegal tip.

And for something like inside information about clinical trials, they earn an average gain of 101%!

An insider who can put up $100,000 would make over $100,000 on average by trading based on illegal tips concerning clinical trials!

And that’s a good representation of why I look to the insiders on Wall Street to show me the way to BIG profits.

If a company CEO is willing to spend millions of his money to invest in his own company because he think it will go up, I am willing to follow his confidence that his company’s stock will go up if my other indicators are met because he likely has some inside information pointing him in the right direction.

That’s why I’m currently researching the likes of Great China Mania Holdings, Inc. (GMEC) and Natural Resource Partners LP (NRP).

Both companies have experienced insider buying in their stock of over $3 million. With that sort of insider confidence, I will be happy to capitalize on these situations if the indicators of my system are met.

If you would like to hear if these two stocks are good buys, what other stocks to look for with insider buying, and WHEN to buy the right ones, check out my Penny Stock Insider monthly newsletter at Wallstreetinformer.com.

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