How to Trade on Insider Information and Get Away with It

by Johnny Debacle

We previously published a brief for investors on How to Hold Based on Insider Information that resulted in a lot of our readership profitting substantially. But correspondence we have received from some readers in jail indicates that some investors are unclear on a second important part about insider trading, the often neglected “getting away with it” part of the buy, sell or hold.

  1. Have a position in a company which issues tradeable public securities (stocks, options, bonds, etc).
  2. Obtain material non-public information from insiders of this same company.
  3. Buy, sell, do not buy or do not sell any of this company’s tradeable public securities.
  4. Send a letter to the SEC detailing at length the ways in which you are using material non-public inforomation to profit. The at length part is crucial so pretend like you are writing a doctortal thesis that you have to defend against people who will never read it because it was too long and too boring.
  5. Profit.

Note: You might recognize Step 4 from How to Commit Financial Fraud and Get Away With It

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