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There are any number of small cap stock forecasting services being sold today which assert to numbers crunch live market data and produce what they say are profitable penny stock picks so that you, the stock trader, need only to enter the trades as you receive the stock tips. Many of these services count on style over substance, and trade on their branding and promise of profitability figures to bring in potential clients.

One such stock forecasting service which concentrates entirely on hot penny stocks has been raising some eyebrows lately among a certain group of traders while adding to its own fame with the accuracy 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 indicates just when a stock is geared toward a breakout move in the market.

According to his website's information, James diligently examined the markets for over two years while working on a way to be able to predict when a stock was ready to move in a upward direction. He tested his theories over and over again, finally perfecting a complicated set of mathematical algorithms which he used to isolate the one key statistic which told him that a stock was poised to make a major move upward.

That key statistic is the "psychological support level" or PSL. The PSL is nothing unique in the trading world; it charts the activity of human behavior that causes a stock to be priced 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 find those stocks which are prepared to make a breakout movement upward. That's the troublesome part which kept him working on perfecting his formula.

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

It seems virtually unbelievable, but his calculations actually do work. You don't have to take my word for it, but can test out his forecasts for yourself. Just sign up for his free special report "Everything You Need To Know Before Investing In Micro Cap Stocks" on his website, and he will email you two free picks that you can graph for yourself. I wouldn't have believed it possible if I hadn't seen it with my own eyes.

What makes Connelly's system of investing in top penny stocks so profitable is the amount of financial leverage that the little investor can gain by using these stock tips. Because you are investing in penny stocks, you don't have to come up with large investment amounts in order to achieve sizable gains. For example, trading 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 looking into if you are a stock market player looking to protect your investment principal or are seeking a way to establish an income stream using penny stock investments as your medium.



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