If I had to give only 1 advice when it comes to trading stocks
You can monitor which stocks the most successful traders and hedge funds trade without spending a dime.
Nothing in this email is making me any money. I’m not affiliated with any company listed below.
Back in the 80s and 90s when I was starting out, you had to read the newspaper and call your broker to make traders. Then your broker had to call other brokers to see if they have the stock you wanted to buy.
We were in the dark.
Today many of the trades are public and available online.
Trades of the members of congress are tracked here: https://www.capitoltrades.com/trades - it’s free to use. We know these guys have some insider knowledge.
Tracking hedge funds here: https://stockcircle.com - again, 100% free. The hedge funds listed on Stockcircle typically generate yearly returns ranging from 30% to 60%.
This information is our unfair advantage.
Let’s use it.
More insights
The key idea behind this strategy is to leverage publicly available information about trades made by top investors to guide your own trading decisions.
Use Public Information:
Many stock trades by influential people, like members of Congress or hedge funds, are public. You can use this info to learn where these insiders are putting their money.
Follow Successful Traders:
By keeping an eye on the moves of successful investors, you can spot trends and opportunities without doing all the original research yourself.
Leverage Their Expertise:
These insiders often have access to advanced research and analysis. Observing their trades allows you to indirectly benefit from their expertise.
Avoid Emotional Decisions:
Following data-backed trades can help you avoid common emotional trading mistakes like buying or selling on impulse.
Stay Ethical:
Ensure you're following the rules while using this strategy, but make the most of the advantage it provides.
In essence, this model is about using publicly available insider information to guide your trading decisions with the goal of improving your own returns.
Here's to buying low and selling high!
Jack from The Daily Moat