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There are any number of small cap stock forecasting services on the market today which claim to numbers crunch actual market data and produce what they announce are profitable penny stock picks so that you, the trader, need only to order the trades as you receive the market tips. Many of these services rely on style over substance, and use their branding and promise of profitability figures to attract potential clients.

One such stock alert service which concentrates entirely on hot penny stocks has been raising some eyebrows lately among a certain sector of investors while contributing to its own prestige with the precision of its picks in recent months. Mathematics whiz James Connelly's Penny Stock Prophet stock picking service targets only penny stocks using a computer generated algorithm that chooses just when a stock is geared toward a breakout move in the market.

According to his website's information, James cautiously examined the markets for over two years while laboring over a way to be able to predict when a stock was prepared to move in a positive direction. He tested his theories over and over again, finally perfecting a complex set of mathematical algorithms which he used to separate the one key statistic which told him that a stock was prepared to make a significant move upward.

That key statistic is the "psychological support level" or PSL. The PSL is nothing groundbreaking in the trading world; it charts the activity of human behavior that causes a stock to be sold at well below its actual value. But what James also discovered was that being able to find undervalued stocks is not enough. You have to be able to come upon those stocks which are prepared to make a breakout movement upward. That's the difficult part which kept him working at perfecting his formula.

He combined what he learned about the PSL with another mathematical method used to predict how human behavior affects things like population growth, crime, and terrorism called psythometric science. He imagined: Why not apply this formula to the stock market? Using all this information combined with four other variables he had uncovered, James eventually perfected a formula that enabled him be able to predict a bullish trading pattern before it occurred.

It seems nearly unbelievable, but his formulas actually do work. You don't have to take my word for it, but can test out his forecasts for yourself. Just apply for his free special report "Everything You Need To Know Before Investing In Micro Cap Stocks" on his website, and he will send you two free picks that you can chart for yourself. I'd not have thought it possible if I hadn't seen it with my own eyes.

What makes Connelly's model of investing in top penny stocks so profitable is the amount of financial leverage that the small investor can gain by using these picks. Because you are trading in penny stocks, you don't have to come up with large investment amounts in order to realize sizable gains. For example, investing in a thousand shares of a stock at .30 cents a share (a $300 investment) which after a few trading sessions rises to .90 cents a share becomes a $600 dollar profit.

James Connelly's Penny Stock Prophet is well worth examining if you are a stock market player looking to protect your investment principal or are looking for a way to establish an income stream using penny stock investments as your vehicle.

An Assessment Of The Penny Stock Prophet Forecasting Service And Its Efficiency On Choosing Winning Stocks
While some were skeptical, James Connelly was certain he could design a mathematical formula that could pick winning stocks. While it took him a few years to perfect, he did manage to generate an algorithm that predicts just when a stock is ready to make an upward market movement.

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