Good morning, traders…
Students often ask me, “Ben, how did you know that stock was about to break out … to that exact level?”
The answer is simple:
I didn’t know. But I followed others who did.
Since starting this newsletter, I’ve shared several insider trading stories that illustrate the power of possessing non-public information.
I do this to demonstrate the power of Smart Money trading, which allows me to trade on insider 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.
Finding public Smart Money trading examples can be difficult…
And that’s because so many of the trades are illegal.
However, there’s a highly controversial corner of the market that consistently exploits insider information to trade.
And with my OMEN Scanner, we can follow their moves legally.
If you haven’t guessed yet, I’m talking about congressional stock trading.
Let’s Investigate Why Politicians Crush Hedge Funds At Their Own Game (And How You Can Follow Their Playbook Without Breaking A Single Law)…
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 congresspeople.
One of the politicians who gets the most criticism in this regard 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 getting passed, every vote being cast, and every regulation coming down the pipe.
This gives them an unbeatable advantage as traders.
It’s like the referee at the Super Bowl placing bets between downs…
Is this fair? Of course not.
But we’re not here to debate the validity of congressional stock trading. Let’s focus on the facts…
The Pelosis’ advantage allows them to bag yearly returns that 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 Smart Money advantage — has allowed her to nearly double the returns of the world’s biggest professional trading institutions.
Riddle me this:
If you knew the ref at the Super Bowl was placing bets in real time — and you had an app that allowed you to see all of his moves (and follow them legally) — wouldn’t you?
This is exactly why I focus on trades that come from my OMEN Scanner.
It gives me an edge, just like Nancy Pelosi (and the ref example).
And although she may be the most notable, Pelosi’s not the only congressperson crushing the markets…
How Congress Beats The Market
Look at the 2023 congressional portfolio returns:
Only six of these politicians lagged the broader market, while 32 beat the SPY.
Brian Higgins made 238% in 2023. (That’s not a typo.)
Do you think he could’ve pulled that off if he weren’t a Congressman?
Of course not.
Looking at 2024, the pattern continues:
David Rouzer leads the pack with 149% returns (he was also #4 in 2023).
Debbie Schultz is right behind him at 142.3%. Ron Wyden pulled 123.8%.
And Pelosi returned 70.9% for the year.
For context, the S&P 500 had a phenomenal year in 2024, returning around 23%.
But these numbers blow that away.
35 members of Congress posted returns higher than 20%. Most crushed the benchmark index by double or triple.
Call it what you want, but these returns don’t come from “luck.”
They come from access to insider information.
These politicians know what’s coming before the market does. They see the votes, hear the closed-door meetings, and understand which companies benefit from legislation before it becomes public knowledge.
This is why I trade the way I do, following the Smart Money…
I want an unfair advantage, an undeniable edge.
By following their trades on my scanners, I can base my moves on their insider 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 scanners, and pull the trigger when the opportunity presents itself.
If that isn’t the ultimate evidence for the value of Smart Money trading, I don’t know what is.
Want to see exactly how we trade these setups with levels, contracts, and a clear trade plan?
Join the great Danny Phee TOMORROW, October 3 @ 4:00 p.m. EST for a LIVE OMEN WORKSHOP.
Let’s show these scheming politicians who the real traders are.
Happy trading,
Ben Sturgill
*Past performance does not indicate future results
