Have you ever wondered who is really behind the scenes in the stock market for alternative data? Spoiler alert: not all the well-known investors are on TV. insider beta Welcome to the world of the stock insiders, those who have a front row seat at all the action. We’ll peel back the veil and discover what makes stock insiders so interesting.

Who exactly are insiders in the first place? We’re talking about company executives, board members, and major shareholders. People with non-public access can have a huge impact on a stock’s performance. Imagine having a crystal ball that tells you whether a company’s next quarter will be stellar or disastrous. That’s kind of what it’s like for them.

Now, let me share a quick anecdote. An old friend of mine used to work at a firm in the tech industry where, just prior to launching a new revolutionary product, the CEO acquired a huge amount of stock. The stock price skyrocketed overnight! Coincidence? No, I don’t think so. The insiders of companies have their finger on the pulse in a way that outsiders cannot.

Keep your cool, though. Insider trade is not always what it appears to be. Insiders are restricted in their ability to buy and sell stocks. This is done so that they do not gain unfair advantages. Consider it like poker except that everyone is required to display their cards in certain intervals.

What’s the reason you should care about what your insiders do? Well, following what insiders do can offer valuable clues about a company’s future prospects. It could indicate that top executives are optimistic about future developments if they start purchasing shares. The opposite is true if the shares are flying off shelves. It might be time for you to change your strategy.

Humor is always welcome. Have you heard the old saying, “When Rome calls, do as Rome does”? As in this instance, “When making investments, look at what your insiders are up to.” While it may not be foolproof advice, it certainly beats simply throwing darts into a list.

Take a look around next time you decide which stocks to sell or buy. This might be the extra edge you were looking for.