Penny Stock Prophet Update - April 2010

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