Can a college dropout teach you how to reach millionaire status by investing in the penny stock market?

It is when his name is James Connolly, the creator of Penny Stock Prophet.

My rating system gives Penny Stock Prophet a rating of 4 out of the 5 penny stock products I am reviewing.

James Connolly was a college mathematics student whose passion was the penny stock market. His goal was to determine a way he could identify variable entry and exit prices that would enable the average investor to get the highest possible return on their investment. He discovered that the key to developing a method to identify winning penny stocks was to identify how the Psychological Support Level (PSL) affected the 4 shared variables of the winning stocks that he selected for his research.

Now penny stocks or micro cap stocks are usually defined as stocks that sell for less than $5 a share. Some experts claim they should be stocks that sell for less than $2, but that is the minority opinion.

The current trend is to concentrate on small cap stocks because the large cap stocks have a difficult time correcting from a negative trend in the overall market like we have endured for the past year or so. The micro cap stocks are much more independent of overall market conditions. The savvy investors know this and they bring their fat wallets to bear on the micro cap market which offers more liquidity than the large cap sector.

What does more liquidity mean for micro cap traders?

It translates into bigger gains for those traders who know how to pick winners in the micro cap market. The current market conditions are going to show bigger gains in the micro cap markets than we’ve ever seen before and the time to invest in the micro cap sector is now.

It is common knowledge to investors in the know that large cap stocks are lucky to have gains of 5-8% in a single day. In fact if they average 10% a year that is considered a very good growth rate. However, when you look at the returns on micro cap stocks, it is not uncommon to see gains of 25+% in a single day. And listen to this, some of the micro cap stocks jump hundreds of percent on just a positive announcement, e.g., New Developments, Stronger Financials, Approval of Mutual Funds, etc.

While it may take a large cap months and even years to achieve a 5-8% jump, micro caps return double digit jumps in just a few days and never longer than a few weeks.

How Do You Find The Micro Cap Winners?

James Connolly’s research discovered a way to estimate buying pressure which is defined as:

High Volume + Rising Share Price = Buying Pressure

His algorithm finds the micro cap stocks that are candidate for breakout from their average cycle. His system, Penny Stock Prophets, identifies winning micro cap stocks long before the average investor arrives to buy the shares. The system indicates the correct time to buy and a buying range, assuring that anyone following his system will get in at the lowest possible price and enjoy the largest percentage gain or increase.

The system uncanningly uncovers the most undervalued companies and ascertains the buying range so that an investor knows exactly when to buy and at what buying point. This puts you way ahead of the wave of investors that are about to come pouring into the market.

Naturally, his system cannot be revealed in this short introduction and review, but you can rest assured that once you invest in the Penny Stock Prophet, you will learn how simple and strait forward it is. Simple enough for anyone to put it into action and reap some extraordinary profits from the penny stock sector of the market.