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Step 1
Watch moves by company officers. Large selling and buying of company shares by officers of that company must be reported to the SEC and the public. You can easily follow these moves by looking up a company on any reliable and robust financial reporting service such as Reuters, Dow Jones or even the New York Times. These outlets provide data about company officers who bought or sold stock at a given price and volume.
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Step 2
Follow the SEC. The SEC, or Securities and Exchange Commission, is the government body that's authorized to oversee securities trading. The SEC closely watches trends of both legal and illegal insider trading. From time to time, the SEC makes policy speeches that can be used to follow and understand the latest trends in insider trading and what they mean for the larger market.
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Step 3
Check out what the gurus are doing. Finance gurus such as Warren Buffet are constantly buying and selling stocks of their own companies. In some cases, you can read what these gurus have to say on their websites or corporate annual reports. In other cases, look to these finance gurus as trend starters that indicate both the condition of the market and the prospect of upcoming deals that require cash or stock to be available.
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Step 4
Read the commentators. One of the best ways to follow insider trading trends is to check out mainstream commentators who report on TV news channels and online bloggers who specialize in trading trends and practices. Check out finance blogs like that of Howard Lindzon or The Stock Bandit to get updates and analysis on the latest insider trading trends.
