| Let's look at this Penny Stock Prophet phenomenon. | | | | trading. They have studied and practiced the art of |
| It's been over a year since the release of the | | | | trading until they became comfortable with a system |
| newsletter where James Connelly began to | | | | that works for them. They made the commitment to |
| recommend penny stocks based on a mathematical | | | | learn how to be a successful trader. |
| formula he developed while a student at MIT. In that | | | | At the heart of any and every successful trader is a |
| time there has been a steady increase in the | | | | sound risk and money management plan. A system |
| attention gathered by the newsletter. | | | | that preserves their capital as rule number 1. So in |
| The stock market in general and penny stocks in | | | | the event that a trade doesn't go the way they |
| particular are far from a sure thing from an | | | | expect it to, they get out with minimal damage. But |
| investment stand point. The markets are a living, | | | | when a trade does go the way they are planning, |
| breathing entity. No one knows for sure what will | | | | they make a nice chunk of the profit. |
| happen next. | | | | Winning at trading the markets is all about playing the |
| People have been searching for the "holy grail" of | | | | probabilities. Recognizing familiar patterns, determining |
| trading since the very beginning. If there was some | | | | risk to reward ratio's, isolating upside potential, |
| sort of magic wand or crystal ball..... just some way | | | | calculating entries and exits... |
| of knowing with certainty the direction... | | | | This is what James Connelly does with his formula. |
| But we all know that is not the case. It is impossible | | | | Mathematics can and does make some sense out of |
| to predict. Even the most skillful traders are wrong a | | | | a chaotic environment. Look into chaos theory. A |
| large percent of the time. So I find it interesting that | | | | computer program can significantly shorten the the |
| in this age of information, with everything being so | | | | time it takes to analyze complex problems and |
| readily available to anyone with an internet | | | | equations. As traders, we just want to try and play |
| connection, that you can't find a whole lot of bad | | | | the probabilities. This gives us a little edge. |
| things about the Penny Stock Prophet Newsletter. | | | | Back when I discovered the newsletter, there were |
| I seems that in today's world, bad news travels as | | | | 3 picks a week being given out. There were some |
| fast or probably even faster than good news around | | | | good ones, picks that I did very well with, and ones |
| the internet. If you do something wrong, take | | | | that didn't do so good. This is normal. |
| advantage of people, or run a scam type of | | | | Lately, in the daily alerts, James is not afraid to say |
| business... it is the kiss of death! You will find that | | | | "hey, I'm not finding anything that looks good, lets |
| information everywhere. And I think that's great! | | | | wait". And in my opinion, this has been a good |
| In all this time the Penny Stock Prophet just keeps | | | | strategy. Instead of feeling the need to churn out a |
| rolling along, gathering members, and recommending | | | | specific number of picks, he now is focusing on the |
| penny stocks that might just make you money. | | | | percentage of winners. I think this is better for |
| Of course, with nothing in life being perfect, there | | | | beginners who have little or no experience in doing |
| are always a few people who may have subscribed, | | | | their own research. It provides an opportunity to |
| tried investing in one or two picks, didn't make any | | | | learn with percentages in your favor. |
| profit, and want to blame someone else. Who was at | | | | The last 2 picks by the Penny Stock Prophet have |
| fault here? The trader or the newsletter? | | | | done rather well. Look back at LYJN which we |
| Does the newsletter pick only winners.... of course | | | | received on March 17th, and FRHV which we |
| not. Nobody can pick only winners, let's be realistic. | | | | received on April 9th. Go to Google finance and type |
| But the biggest difference between successful | | | | in the stock symbols. You will see that these were |
| traders and those who struggle, is not so much the | | | | profitable picks for many of us. |
| picking, although that is certainly a big part of the | | | | If you want to learn about investing in the market, |
| equation,... the largest variable is the trader himself. | | | | pennies are a good start. They are very inexpensive, |
| If trading were easy, everyone would be making a | | | | so you don't have to risk a bunch of money. Also, I |
| living doing it. Why would anyone want to go off to | | | | strongly recommend that beginners paper trade at |
| work if they could stay at home and make a killing in | | | | first for a couple months, until you begin to get a |
| the markets? | | | | feel for trading. Don't risk any money until you are |
| There are people however, who do make a living at | | | | comfortable with the whole process. |