Have you ever thought,
"What if I get some secret information about a stock and trade on it?"
That sounds tempting, right?
But let me tell you — insider trading is not only wrong, it's illegal.
🚫 What is Insider Trading?
Insider trading happens when someone uses confidential or non-public information about a company to buy or sell its shares for personal gain.
For example:
If an employee knows in advance that their company is going to announce very bad financial results, and they sell their shares before the news goes public, that is insider trading.
It gives an unfair advantage to a few people while the rest of the market remains in the dark.
⚖️ Why Insider Trading Is Illegal
Insider trading is strictly banned by SEBI — the Securities and Exchange Board of India.
Why?
Because it breaks the fairness of the market.
It creates a system where people with inside contacts always win, and retail traders like us keep losing.
That’s why SEBI has very strict rules against it.
If anyone is caught doing insider trading — whether an employee, company executive, or a trader — they can face:
Heavy penalties
Bans from trading
Even jail time
📢 Trade Only on Public Information
As a mindful trader, you should always make your trading decisions based on publicly available data:
Company results
Chart patterns
Price action
News from trusted sources
Never fall for someone who says,
"Mere paas andar ki khabar hai — buy this stock!"
That’s a red flag. And if you act on it, you might get into serious trouble.
🧠 Final Thoughts
Insider trading might look like a shortcut to profit.
But in reality, it’s a trap that can ruin your trading career.
Be a disciplined, ethical trader.
Trade with a strategy. Learn the market.
Stick to what's legal, fair, and public.
That’s how long-term success is built — not through shortcuts.
If you're serious about becoming a better trader, follow me at Mindful Trading Hub, where I share real, honest lessons to grow in the stock market with the right mindset.
Let’s trade the right way. 💛
Share this post