Market Timing with TurnerTrends Provides Great Stock Picks for the Sophisticated Investor

Timing the Market well requires Stock Picks that work

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Mike's 10 Must Follow Rules for Making Consistent Profits in the Stock Market

Mike's 10 Must Follow Rules for Consistent Profits in the Stock Market

Rule #6: Watch for Insider Buying

Here's an important axiom: "There are many reasons for Insider SELLING; but there is only ONE reason for Insider BUYING.

I really don't care about insider selling. There are just too many legitimate reasons why an 'insider' would need to sell stock, other than 'knowing something bad is about to happen to the company'.

But, the only real reason for insider buying is because the insider knows or thinks something good is about to happen to the company or in the company's industry.

On the right is a chart of CHK (Chesapeake Energy Corp) and below is a graph of the last 10 months of insider buying and selling. Even though the stock has skyrocketed upward in price, the insiders continue to buy (note the blue lines). To me, this is a great indication of confidence by senior management of the company.

I would NOT buy a stock just because of a strong history of insider buying, but when I am trying to decide between two stocks that are equal in all other aspects, this one piece of information could sway my choice to go with the company with the greatest insider buying.

Continue to Rule #7, Institutional Ownership.

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*Past performance does not guarantee future results. TurnerTrends makes no representations or warrants that just because a stock would have made a profit in the past, using TurnerTrends buy recommendations or sell recommendations, it will make any profits in the future. It is possible that these same stocks will lose money in the future using the TurnerTrends stock recommendations.

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