Trading with insiders not with masses

Why do retail investors always suffer with losses? Are "Institutional Investors" the only one who has the right to make money? 

These types of so many questions I was asking to myself and when you ask questions there is an answer. I was reading a very nice book where a concept of 80/20 pareto principle was nicely explained. I would like to summarize the whole book concept and betting that it will definitely help you provide an edge in investing.

Firstly, I would like to brief you about Pareto principles. What does it say?  This is the principle of "Vital Few" which says 80% consequences come from 20% causes. It applies everywhere. Firstly, it is observed in 'ITALY' where 80% of land was occupied by 20% of the population. Another observation is that 20% is the conclusion of the whole book, 20% of your clothes you wear 80% of the time. Remember it is not a thumb rule but is just an observation and this simple observation works  wonders in the 'Stock Market' let us understand how?

Firstly, Tell me if you are doing a business then who knows your business better? I mean what you are going to earn, who knows it better, you, your neighbour or any other person who is closely watching your business. Of Course it is the only you !

Tell me a thing why does this happen that you buy a stock and it falls down, you add more and it falls more why why why?

Here  comes the role of insiders into the picture. Let us understand.

For example there is a stock which has fallen more than your expectation and you think it is now cheap to invest you invest it falls more everywhere there is something bad about the stock every newspaper, every news channel every journal article tells how much the company is bad. But 'Insiders' are buying aggressively, they are the few who are against the masses. It is a sign that stock is forming a bottom. And again if everyone is talking good about the company  and 'Insiders' are getting out of the stock it clearly shows the sign that it is near the bottom. 

Crux of the whole article is that you must watch the 'Insiders' activity before investing in those stocks which are in the limelight today.