Long or Short Capital

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

• If He Is Insuring You, and You are Insuring Her, Who is Insuring Him?
• Insider Sales: How It's Done
• How to Hold Based on Insider Information
• A Miniballer Recommends: Reminiscences of a Stock Operator
• It's Direktanlage Wednesday!
• Overheard in Our (Fictious) Office
• Spam at its Best: Serret Bu(y)
• Spam at its Best: Insider Scone Info