There are any number of penny stock forecasting services being sold today which claim to crunch actual market data and produce what they maintain are profitable penny stock picks so that you, the stock trader, need only to make the trades as you receive the investing tips. Many of these services depend on style over substance, and trade on their branding and promise of profitability figures to allure potential clients.

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

According to his website's information, James cautiously studied the markets for over two years while laboring over a way to be able to predict when a stock was poised to advance in a positive direction. He examined 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 prepared to make a significant move upward.

That key statistic is known as the "psychological support level" or PSL. The PSL is not anything unique in the trading world; it forecasts 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 come upon those stocks which are ready to make a breakout move upward. That's the troublesome part which kept him working on perfecting his formula.

He combined what he uncovered 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 deduced: Why not employ this formula to the stock market? Using all this information combined with four other variables he had uncovered, James finally refined a formula that enabled him be able to predict a bullish trading pattern before it occurred.

It seems virtually unbelievable, but his computations 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 send 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 procedure of investing in top penny stocks so profitable is the amount of financial leverage that the little investor can gain by using these picks. Because you are investing in penny stocks, you don't have to come up with large investment amounts in order to accomplish 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 translates into 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 capital or are searching for a way to set up an income stream using penny stock investments as your medium.