A lot of people don’t take penny stocks seriously. Penny stocks are those stocks that typically trade for less than $5 per share. Most of these stocks are traded on the Over the Counter Bulletin Board (OTCBB) and on the Pink Sheets. The regulation on OTCBB is not as strict as that of regular stock exchanges like the New York Stock Exchange (NYSE).

This makes penny stock trading a bit risky. So invest only that money that you can afford to lose. The best way is to start with just something like $200 and increase that amount by a large sum over time. What this means is that you are not going to add more to that $200 and let it grow over time with a series of well-planned trades. This way you will never lose more than $200 of your hard earned money on this company.

This is the story of James Connelly, an Ivy League statistical genius, and how he found a secret mathematical formula that would tell him when a penny stock was on the verge of a breakout and about to make a big market move. He started with just $1K and in just 38 trades he turned that amount into $1M in 1 month. His average return per trade was 20%.

As a student, James Connelly majored in math with a primary focus on finding winning stocks. He was convinced that he could find a statistical formula that could predict winning actions. He spent months researching trading patterns, volume, and resistance levels to find the secret recipe that would predict winners.

He ultimately found that psychological support level (PSL) was the key variable determining the four shared variables of winning actions. He developed an algorithm that used PSL as a key factor in determining the winners. He applied that to penny stocks and was able to demonstrate pretty much how anyone can turn $1K into $1 million with penny stocks. He is also known as the Prophet Stock!