There are any number of micro stock forecasting services on the market today which claim to process live market data and produce what they declare are profitable penny stock picks so that you, the investor, need only to make the trades as you receive the stock tips. Many of these services count on style over substance, and use their branding and promise of profitability figures to draw in potential clients.

One such stock forecasting service which concentrates entirely on hot penny stocks has been raising some eyebrows lately among a certain sector of investors while adding to its own fame with the correctness of its recommendations in recent months. Mathematics whiz James Connelly's Penny Stock Prophet stock picking service targets only penny stocks using a computer generated algorithm that predicts 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 working on a way to be able to tell when a stock was positioned to breakout in a positive direction. He tested his theories over and over again, finally perfecting a complicated 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 known as the "psychological support level" or PSL. The PSL is not anything novel in the trading world; it examines 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 find those stocks which are ready to make a breakout movement upward. That's the difficult part which kept him working on perfecting his formula.

He combined what he discovered 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 apply this formula to the stock market? Using all this information combined with four other variables he had uncovered, James eventually developed a formula that assisted him be able to predict a bullish trading pattern before it occurred.

It seems all but unbelievable, but his calculations 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 picks that you can chart for yourself. I wouldn't 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 monetary leverage that the little 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 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 translates into a $600 dollar profit.

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

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