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There are any number of penny stock forecasting services being marketed today which claim to numbers crunch live market data and produce what they announce are profitable penny stock picks so that you, the trader, need only to make the trades as you receive the market tips. Many of these services depend on style over substance, and trade on their branding and promise of profitability figures to draw in 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 fame with the precision of its stock tips in recent months. Mathematics wonderkin 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 prepared for a breakout move in the market.

According to his website's information, James carefully examined the markets for over two years while laboring over a way to be able to tell when a stock was prepared to advance in a upward direction. He tested his theories over and over again, finally perfecting a complex set of mathematical algorithms which he used to find 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 forecasts the activity of human behavior which 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 ready to make a breakout movement upward. That's the difficult part which kept him working at perfecting his formula.

He combined what he discovered 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 conjectured: Why not employ this formula to the stock market? Using all this information combined with four other variables he had uncovered, James eventually perfected a formula that assisted 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 predictions 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 email you two free tips 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 tips. Because you are trading in penny stocks, you don't have to risk putting up large investment amounts in order to accomplish 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 searching for a way to establish an income stream using penny stock investments as your medium.

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