How to automatically track insider trading?

“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” – Peter Lynch

There are many useful strategies that can guide us making sound investment decisions. Among those, one simple winning-proven tactic is to follow the insiders. The insiders are normally the corporate officers, directors, and 10% or more owners. They are the people who directly manage the company and understand its operation and cash flow much better than anyone else. Thus by watching out their movement, we can have a better perspective for the company, the industry, the economic and market in general.

Statistics (see following figure) strongly suggest that corporate insider buys and sells ratios can be used to closely predict the overall market movement.

So far there are many web sites, listed as below, that can greatly you track the insider trading movement.

www.insidertrading.org

http://www.insidertradings.com/

http://www.gurufocus.com/InsiderBuy.php

http://www.insiderslab.com/

www.secform4.com

http://www.insidermonkey.com/

https://www.insiderscore.com/info/insider.php

However, I still think it is not an optimal way to track the insider movement through the above 2^nd hand web sites since you are not sure whether the data come from the 2^nd hand web sites are most updated or correct or not. Even though they might be all correct and most updated, you views can be easily distorted by the experts’ comments posted on their web sites. Therefore, the best way to track, I think, is directly go straight to the heart, the original, the most trustworthy government database, which is www.sec.org. And you can look at the first hand information and then make your own best judgment.

Here I am going to guide you through how to let the SEC automatically feed you the update insider news at your finger tip,

• Go to sec web site company search, http://www.sec.gov/edgar/searchedgar/companysearch.html type in company name or ticker (such as AAPL), and forms 4 as follow 
•  Click button “find companies”, you will see this page, 

 ·         Click “RSS Feed” on this above page 

·  Copy this above link

·  Go to you Google account “Google reader” 

  ·    Click “subscribe” 

 ·   Paste the link from RSS feed to the above empty block

·  Voila, you have form 4 directly fed into your Reader!  

So every day when you go into Google Reader, you can easily see the most updated insider trading information straightly fed by SEC, isn’t that cool? Please also note that you can RSS feed all other SEC documents in the similar fashion.

By the way, I just got informed from my google reader that one director of BAC used her own money to buy 80,000 shares @$7.39 on 02/01. It seems like something is going on really interesting now.