Happy Thursday, traders…
Ben here.
Since starting this newsletter, I’ve told you several insider trading stories, illustrating the power of possessing non-public information.
I do so to show you the power of ‘smart money’ trading, which allows me to trade on this sort of information without actually having it (more on that later)…
For example: The story of Tyler Louden. His wife worked for British Petroleum. When he overheard her private business phone calls about an upcoming acquisition, he bought into the target company … illegally. He made $1.7 million before the SEC caught up to him, his wife divorced him, and he went to prison.
But aside from tales like Tyler’s, it’s often difficult to find great ‘smart money’ trading examples…
And that’s because so many of the trades are illegal.
That said, there’s a highly controversial corner of the market that constantly gets away with using insider information to trade.
If you haven’t guessed, today we’re gonna talk about congressional stock trading (and what you can learn from it)…
The Ultimate ‘Smart Money’ Traders? Politicians…
At the end of each year, we’re able to see a list of the total % gains for the portfolios of senators and congresspeople.
One of the politicians whose trades get the most criticism is Rep. Nancy Pelosi.
This is for two primary reasons:
- Pelosi was Speaker of the House for eight years, where she was responsible for regulating tech companies.
- Pelosi’s husband, Paul, is a venture capitalist who traded hundreds of millions of dollars in stock options on the very same tech companies his wife was responsible for regulating.
You don’t have to be Sherlock Holmes to see the conflict of interest here…
The Pelosis know every law that is getting passed, every vote being cast, and every regulation coming down the pipe.
This gives them an INSANE edge in trading. It’s like the referee at the Super Bowl being allowed to place bets at halftime.
Is this fair? Of course not. But we’re not gonna debate the validity of congressional stock trading today…
Rather, let’s focus on the facts — the Pelosis’ advantage allows them to bag yearly returns that would make the world’s biggest hedge funds green with envy.
In 2023, Nancy Pelosi reported total portfolio returns of 65%.
To put this in perspective, the most sought-after hedge funds on the planet often boast between 30%-40% annualized returns.
In other words, Pelosi’s access to insider information — her unfair, ‘smart money’ advantage — has allowed her to nearly double the returns of the world’s biggest professional trading institutions.
This is exactly why I focus on trades that come from sweeps on my Spyder Scanner … it gives me an unfair advantage, just like Nancy.
‘Smart Money’ Trading Led to 238% Gains in 2023
It’s not just Nancy Pelosi who crushes the market in Congress…
Look at this graph of the 2023 congressional portfolio returns:
Only six of these politicians lagged the broader market, while 32 beat the SPY.
This guy Brian Higgins made 238% in 2023…
Do you think he could’ve pulled that off if he wasn’t a Congressman?
Of course not. It’s all about access to information…
This is why I trade the way I do, following the ‘smart money…’
I want an unfair advantage, an undeniable edge.
And what sets big institutional ‘smart money’ apart from retail traders in their Mom’s basement is information.
By following the ‘smart money,’ I give myself a huge leg up over my competition.
I can base trades on ‘smart money’ data without actually having it.
I don’t need to know the material, non-public information that these mysterious traders might be using…
I simply need to know what to look for, pay close attention to my Spyder Scanner, and pull the trigger when the opportunity presents itself.
And if that isn’t the ultimate evidence for the value of ‘smart money’ trading … I don’t know what is.
With that in mind, let’s take a look at…
💰The Biggest Smart-Money Bets of the Day💰
- $4.6 million bearish bet on XLF 04/19/2024 $42 puts @ $2.33 avg. (seen on 4/17)
- $3.54 million bullish bet on TSLA 04/26/2024 $175 calls @ $1.79 avg. (seen on 4/17)
- $1.35 million bullish bet on GOOG 05/10/2024 $162.50 calls @ $3.85 avg. (seen on 3/26)
Happy trading,
Ben Sturgill
P.S. The best place to start ‘smart money’ trading is our Spyder Webinars…
This SATURDAY, April 20 at 3 p.m. EST — my colleague Danny Phee is hosting an urgent LIVE WEBINAR where he’ll reveal the most promising ‘smart money’ trades we’re seeing this week.
What are you waiting for? CLICK HERE NOW TO RESERVE YOUR SEAT.
