Guide 4

Why copying a disclosed trade is risky

A public official's transaction can be interesting, but blindly copying it ignores critical information. The disclosure system was designed for transparency—not as a trading service.

The information is delayed

A report may appear weeks after the transaction. By then, the price, news, and risk-reward profile may be different.

You cannot see the whole portfolio

A single purchase may be small relative to the filer's wealth, offset by another asset, managed by an adviser, or part of a diversified strategy. The PTR alone cannot explain motivation.

The amount is approximate

Reported value bands are broad. Without exact share count and execution price, outsiders cannot precisely reproduce the transaction.

Your situation is different

Time horizon, income, taxes, liquidity needs, risk tolerance, and concentration all matter. A trade suitable for one household may be inappropriate for another.

Use disclosures as research prompts

A safer approach is to treat a filing as a reason to investigate the company, read primary documents, evaluate valuation and risk, and decide independently—or consult a qualified professional.

For Us By Us does not rank trades as “buy signals” and does not promise that following officials will produce profits.

Official filing background: House Committee on Ethics