The insider trading you're allowed to do

The insider trading you're allowed to do(coached.com)

33 points by rohanm93 2 hours ago | 14 comments

yawaramin 52 minutes ago |

Actually, the real legal insider trading is the trades that you _don’t_ place based on insider knowledge. Eg, if you know that the iPhone is years ahead of everything else and you happen to be holding Apple stock, then you won’t let whoever is managing your portfolio sell any of it when otherwise you may not have cared. There’s no way to prove illegality for _not_ placing a trade.

dumberquestions 44 minutes ago | |

There should be a name for this cognitive bias, not accounting for what someone is not doing.

elil17 6 minutes ago |

How many people think this way, jump ship, and end up being wrong?

harporoeder 32 minutes ago |

There are explicit insider trading forms such as SEC forms 3, 4, and 5. Insiders are allowed to trade as long as it is declared to the government. The issue is with trading while having material non public information. Frequently trades are executed on an explicit schedule with rule 10b5-1 to act as a defense against accusations of trading on MNPI.

haunter 8 minutes ago |

https://pelositracker.app/

https://www.quiverquant.com/strategies/s/Congress%20Long-Sho...

sixtyj 1 hour ago |

This is not an “insider trading”, it is an insider’s knowledge (affinity to knowledge) and ability to use it.

bananaflag 1 hour ago |

Also see the famous case of

https://en.wikipedia.org/wiki/Dave_Mustaine

who left Metallica to found Megadeth.

pipes 54 minutes ago | |

Genuine question, what inside info did he have?

Also

"Initial drummer Carruthers was replaced after Mustaine and Ellefson decided they could not trust him. Carruthers had chosen to hide his black heritage from them by claiming he was Spanish, and they could not understand why he would deceive them.Brett Frederickson joined the band in November 1983 as their next drummer."

That move probably hasn't aged well. Pretty nasty.

Edit: I can't recall which podcast I heard this, but ismtbhebthe guy that was sad that his band didn't sell as many records as Metallica?

elvircrn 55 minutes ago | |

Completely unrelated to the article claims.

cucumber3732842 12 minutes ago |

On the flip side, even if the company is on the way up and you're on some team that's at the center of it and you'll never benefit from it if your manager doesn't like you. All the opportunity to do all the things that lead toward career growth and compensation will go to other people.

toppa33 41 minutes ago |

Good article. I feel this way about my job :/

yieldcrv 46 minutes ago |

I read the article and I’m far more interested in talking about actual legal insider trading in the equities market

You may not be able to trade your company’s stock, or a competitor’s if you have knowledge that was under an employer agreement, but you can trade your sector and correlated assets

You can have an edge, it’s not a legal issue.

graemep 22 minutes ago | |

I assume you mean things like trade secrets that you cannot disclose? That is legal because it is not information that is confidential the same way as say financial results are. It is confidential, but for different reasons. It also tends to be much more long term information so people cannot make a quick profit from it. Its also impractical to regulate.

Havoc 49 minutes ago |

Unfortunately doesn't work that smoothly everywhere because outcomes are often tied to larger unknowns whether it is will AI bubble pop or will the global economy take a dip.

Access to internal data isn't a crystal ball