THIS WEEK’S FOCUS

Invest Like an Insider: 5 Smart Money Secrets They Don’t Want You to Know

Wall Street plays a different game than the rest of us. They move first, control the narrative, and make money whether the market is up or down. Meanwhile, regular investors are left guessing, chasing trends, and reacting too late.

But here’s the truth: it’s not magic, and it’s not luck. The pros follow a repeatable playbook that helps them stay ahead. The good news? You can use the same strategies to stack the odds in your favor.

Here are five insider investing strategies that hedge funds, billionaires, and professional traders use—so you can start thinking like the 1%.

INVEST ALONGSIDE CORPORATE INSIDERS

🌟 Magnificent 7 Insider Trading Follower

Institutional investors have a massive advantage—they get information first, and they act fast. But what if you could legally track and follow their moves? That’s exactly what the Magnificent 7 Insider Trading Follower strategy does.

This strategy analyzes insider trading activity in the seven largest tech companies—Apple, Microsoft, Google, Amazon, Tesla, Nvidia, and Meta—by tracking regulatory filings from key executives and major shareholders. When insiders buy or sell, they're making moves based on knowledge the public doesn’t have yet. This strategy systematically adjusts its portfolio based on those trades, helping investors align with those who understand their companies best.

Why This Strategy Works

• Insiders don’t gamble with their own money—they buy when they expect growth.

• When multiple executives buy at the same time, it’s a major bullish signal.

• By tracking these trades, this strategy gives you an edge beyond traditional analysis.

WHEN A COMPANY BUYS ITS OWN STOCK, IT’S USUALLY A GOOD SIGN

1. Follow Buybacks to Front-Run EPS Expansion

Big companies love stock buybacks because they reduce the number of shares available in the market. With fewer shares, earnings per share (EPS) goes up, and the stock price often follows. It’s a sneaky way for companies to boost their value without actually increasing revenue or profits.

📈 Example: Apple (AAPL) spent over $80 billion on buybacks in 2023 alone. The result? A steady climb in stock price as supply shrank and demand remained high.

How to Use This Strategy:

• Watch for buyback announcements in earnings reports.

• Focus on companies with strong financials that consistently repurchase shares.

• Be cautious if a company is buying back shares while piling on debt—it’s not always a good sign.

WHEN THE CEO IS BUYING, THEY KNOW SOMETHING YOU DON’T

2. Follow Insider Buying (But Ignore Selling)

Company executives have access to the best information about their business. If they’re spending their own money to buy company stock, it’s often because they expect it to go up. On the flip side, insider selling doesn’t always mean trouble—people sell for all kinds of reasons (buying a house, diversifying, taxes, etc.).

🔍 Example: In 2020, Tesla’s CFO bought a ton of shares just before the stock skyrocketed. He knew something big was coming.

How to Start:

• Look for “cluster buying”—when multiple executives buy at the same time.

• Track insider purchases using websites like InsiderTracking.com or SEC filings.

• Ignore sales unless they are massive and widespread—it’s the buying that matters.

PROS DON’T TRADE ON GUT FEELINGS, SO WHY SHOULD YOU?

3. Automate Like a Hedge Fund

The investors and funds that do outperform the market follow structured, data-driven strategies—not emotional stock-picking.

Hedge funds and institutions don’t sit around watching charts all day and making emotional decisions. They use automated trading systems that follow rules, react in real-time, and eliminate human error. This gives them an edge over traders who rely on instincts or the latest news cycle.

💡 Renaissance Technologies, one of the most successful hedge funds in history, relies entirely on data-driven, automated trading strategies. No guesswork—just math.

Here’s how to start:

• Use automation to remove emotions from your trades

• Backtest strategies before putting money on the line

• Let smart portfolios handle market fluctuations for you

👉 Shameless plug: Surmount offers automated investing strategies built to execute like the pros—without the need for coding or constant monitoring.

INSTITUTIONAL INVESTORS MOVE FIRST

4. Watch Where the Big Money is Moving

Big players—hedge funds, pension funds, and billionaires—move markets when they buy or sell in large amounts. If you can spot where money is flowing before the crowd catches on, you’ll always be a step ahead.

📊Ever notice how some stocks suddenly explode higher after weeks of doing nothing? That’s usually because hedge funds were quietly buying before the breakout.

• Check quarterly 13F filings to see where big funds are putting their money.

• Use tools like Fintel.io or Finviz to track institutional ownership.

• Pay attention to dark pool trades—these are private transactions that often signal big money moving in.

WINNING ISN’T ABOUT JUST GAINS — IT’S ALSO ABOUT AVOIDING BIG LOSSES

5. Protect Your Downside Like a Pro

Most retail traders focus only on making money. The best investors, though, focus just as much on not losing money. That’s why hedge funds use risk management tools to protect their portfolios when the market turns south.

Example: During major market crashes, top investors don’t just sit and watch their portfolios drop—they use hedging strategies to limit losses.

How to Use This Strategy:

• Keep some of your portfolio in assets that move differently from stocks (gold, bonds, or cash).

• Use inverse ETFs or put options to protect against big market drops.

• Don’t go all-in on any single stock—diversification is your safety net.

Want to Invest Like the Pros? Automate It.

Here’s the challenge: Professional investing strategies take discipline, research, and split-second decision-making. Most retail investors don’t have the time (or the stomach) to keep up.

That’s why automation is the key to leveling the playing field.

With Surmount, you can invest using data-driven, rules-based strategies that eliminate guesswork and optimize execution—just like hedge funds do.

✅ Automated strategies that react to market conditions
✅ Remove emotions from your trades
✅ Spend less time monitoring markets, more time enjoying life