In The Insider Edge, Guy shares his proven secrets so that you, too, can read the markets like a pro and make better trading decisions. Many of the savviest, best informed traders gravitate towards the options market, and this book reveals a revolutionary new trading indicator, the OVI (Options Volatility Indicator), that uses options transaction data to follow what these experts are trading so that you can spot and capitalize on new trends as they emerge.
- (i) More fortunes have been created from the stock market than any other financial instrument. Sure, there are folks who’ve made their fortunes from Forex, commodities, futures, options, and other instruments. But many more fortunes have been made from stocks. Why? Because they’re more accessible and because stocks, like no other instrument, give certain people at certain times an edge that no other instrument can give. And that edge is what I call “privileged” information.
It’s a fact that some folks are going to know what’s going on with certain companies at certain times. Sometimes this information is intuitive because they have proximity to the business—for example, a supplier or customer to the business has no inside information, per se, but has a general feel for how things are going for that corporation. Sometimes the information is more intimate—for example, information held only by the company’s officers and close advisors. Whatever the case, I’m certainly not advocating illegal insider trading, but whether we like it or not it’s always going to happen to some extent. Sometimes it will be legal and sometimes it will be illegal. We’ll focus on the legal side of it, because in our method, we’re going to follow what looks like informed trading. This “informed” trading may be completely innocent, and all we’re going to do is follow it.
You don’t need to be an insider or even have any information per se to make use of privileged information. Besides, even those with supposed inside information often get it wrong because the market may have already factored in certain information beforehand. As such, insider trading doesn’t necessarily translate to profitable trading. Suffice it to say for our purposes, being able to observe transactions in the financial markets is far more important than the specific information on which they may be based.
In this book I’m going to show you how to follow the traders who appear to have privileged information, and how to translate that into profitable trading for you.
- (ii) There is one type of chart pattern that is responsible for more success than any other pattern or indicator. The pattern is easy to find and, crucially, easy to use in order to create a robust trading plan.
In this book I’m going to focus on the chart pattern (and its close relations) that will massively increase your odds of success
- (iii) Combining (i) and (ii) together to create a robust and simple trading plan will give you a phenomenal edge in the markets.
In this book I’ll show you how to combine (i) and (ii) to create a safe trading plan that will also give you the ability to trade for windfall profits.
- The Most Popular Chart Patterns
- The OVI: Guide to the Insiders
- Flags and Channel Breakouts in Detail
- The Trading Plan
- Putting It All Together
The Insider Edge: How to Follow the Insiders for Windfall Profits By Guy Cohen pdf