Penny stocks attract traders seeking big gains. But, these stocks also carry significant risks. One smart strategy is to track insider trading via SEC filings. Insiders, like directors and officers, often access vital, non-public information. Their trade patterns can offer valuable information to investors.
Monitoring insider buying and selling can reveal clues about potential penny stocks to trade. Insider transactions are a crucial part of investment decisions. But they require careful analysis. This article looks at using insider activity for penny stock investment. We discuss risks, rewards, and best practices. We also discuss penny stocks with recent insider buying.
This post originally appeared on PennyStocks.com.