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Chapter 6

Insider Trading and

Why You Need to Do It

I

n stocks, insider trading is illegal. In real estate, insider trading is es-sential.

In any market, there are insiders and there are outsiders. When corporate executives on Wall Street buy or sell stocks in their own companies with “insider knowledge,” they go to jail. When a real estate investor gets first chance to purchase a property privately without public knowledge, he can get rich.

Markets like Wall Street are set up like casinos, and TV stations like Canada’s BNN (Business News Network) are funded by stockbrokers to create excitement and encourage trading. Stockbrokers get paid when trades happen, so they want their audience on BNN to get emotional and make as many trades as possible. BNN will run stories that pump up the emotions of the audience just to make money; the information is not provided to make actual sound investment decisions.

When emotions go up, intelligence goes down; in a casino, the house always wins. And when it comes to stocks, you are not the house.

In my opinion, the stock market is not designed for the average investor