There are any number of micro stock forecasting services being sold today which claim to crunch actual market data and produce what they announce are profitable penny stock picks so that you, the stock trader, need only to make the trades as you receive the stock 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 predicting service which focuses entirely on hot penny stocks has been raising some eyebrows lately among a certain group of investors while adding to its own prestige with the correctness 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 prepared for a breakout move in the market.

According to his website's information, James laboriously investigated the markets for over two years while working on a way to be able to prognosticate when a stock was positioned to breakout in a positive 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 ready to make a major move upward.

That key statistic is called the "psychological support level" or PSL. The PSL is nothing new in the trading world; it charts 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 prepared to make a breakout push upward. That's the hard 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 imagined: 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 enabled him be able to predict a bullish trading pattern before it occurred.

It sounds virtually unbelievable, but his computations actually do work. You don't have to take my word for it, but can test out his prognostications 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 graph 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 monetary leverage that the small investor can gain by using these stock 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 becomes a $600 dollar profit.

James Connelly's Penny Stock Prophet is well worth examining if you are a stock market investor looking to protect your investment principal assets or are looking for a way to establish an income stream using penny stock investments as your vehicle.