NASDAQ Insider Trading Secrets: How to Leverage Legal Disclosures for Market Edge
Sophisticated investors are turning to SEC FORM 4 filings as a predictive tool, filtering out routine transactions to focus on high-conviction insider purchases. The strategy hinges on seven key filters, with particular emphasis on small-cap NASDAQ companies between $250 million and $2 billion in market capitalization—a segment where academic research shows the strongest correlation between insider activity and subsequent outperformance.
While the term 'insider trading' carries negative connotations, legally disclosed transactions by corporate officers provide unique visibility into a company's prospects. The methodology systematically eliminates compensation-related sales and diversification events, isolating only discretionary purchases that signal genuine confidence in a firm's trajectory.
