Offshore and RWG Guest, It is all too easy to get caught in insider trading. I am in the securities business, and no, I am not a trader, but rather a planner (buy and hold). Let me try to educate those who may ever wish to trade on insider information.
First, Insider trading is when a person with inside information, acts upon a "tip" or knowledge, that is not available to the public, or better said, non public information.
When an average or worse yet, a person who has never traded stock, purchase a large number of lots (bundles of 100 shares), that triggers a red flag. Most investors will purchase blue chip stocks, when a purchase of a little known company is exercised, and you have little investment history or experience, that raises red flag #2. The next question, how long do you keep the stock? If the first two weren't enough evidence to charge on insider trading, this part here is your "finger print in the crime scene." Shortly after you have purchased the lots, you quickly turn around and sell those shares, in a matter of minutes, hours, days, or months, is how you can be spotted very, very easily.
Now, if you don't think that the SEC hasn't already flagged the company, and the clearing firm doesn't have their "policeman" looking at this, you are a fool, and you will be busted.
All the best.