PENNY STOCK PROPHET Review
This page contains a candid review of the Penny Stock Prophet email alert newsletter based on our own experiences having tried this product for a number of months.
Does Penny Stock Prophet Work?
Is Penny Stock Prophet a Scam?
Penny Stock Prophet Review
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Penny Stock Prophet Executive Summary
Penny Stock Prophet
Does Penny Stock Prophet Work?
Before we can answer this question we need to take a quick look at penny stocks and examine the difference between them and the stocks of your ‘regular’ low, middle and large cap companies.
The difference is in the volume, or the number of stocks that are floating around on the stock market. Middle to large cap companies have millions, if not tens of millions of shares changing hands every day.
With so many buyers and sellers about, buying shares or selling shares in any particular stock is easy. In other words there are always sellers around if you are trying to buy shares and vice versa.
More importantly however is that it takes an enormous number of shares to change hands for the price to move significantly. The larger the company capitalization the ‘heavier’ the company is … picture how many people it would take to push a ten ton truck.
Conversely penny stocks are companies with micro capitalizations (microcaps), and as such their prices can move dramatically if a larger investor takes a position in the stock, or sells their position. This micro capitalization is reflected in the price of each share, which by definition is just pennies a piece.
In fact with many penny stocks it doesn’t take any large investors to move a stock dramatically, just a significant number of small investors/traders will do the trick as well.
Those smaller investor/traders make up a large proportion of Penny Stock Prophet subscribers.
In theory a system like Penny Stock Prophet works like this:
James Connelly does his research and spots the hottest penny stocks to buy which he believes are about to breakout. He has his own ‘secret’ methods for choosing a stock and deciding what would be the best price to buy in at and the best price to exit.
When the entry price is reached James Connelly takes a position and alerts his subscribers who also take a position. The stock price moves upwards and when it hits his target he exits, as do his subscribers. Everybody on the list who follows him are happy as they all make money.
One could argue that it is the volume of shares traded by the subscribers themselves which causes the share price to rise and this in turn draws in more buyers causing the share price to rise still further. It becomes a sort of self-fulfilling prophecy.
In other words even if the reasons James Connelly’s justifications to play the stock never actually happen, the stock still rises on the activity, and provided he and his subscribers exit at the target price they will make money anyway.
Regardless of whether there is justification or not, you too can use this activity to your advantage.
For everybody else, once it becomes evident that the stock rise was not justified, the stock quickly tumbles back to its original price, or more likely to below its original price as investors bail in panic.
Even unsuspecting subscribers get caught if they are not around to exit at the right time, or as is often the case greed prevents them from selling when they are supposed to.
What this means to Penny Stock Prophet subscribers, and how it would mean to you if you decided to buy into Penny Stock Prophet, is that you need to stick to the recommendations precisely – and be quick off the mark.
If you get greedy or neglect your position you will lose.
Incidentally, greed is the number one reason subscribers to Penny Stock Prophet fail to make money with it, so don’t let that be you.
The system works statistically in that if a stock goes the wrong way the loss is limited by the stop, which is fraction (much less than half) of the gains of a successful prediction. Provided half the predictions go the right way then in the longer term you will profit.
James Connelly does in fact get most of his predictions right (whether it’s due to the ‘self-fulfilling prophecy’ or not), which means over the course of several trades his subscribers do come out handsomely, as would you.
So in answer to the question, “Does Penny Stock Prophet Work?”, the answer would have to be yes, on condition you’re quick to make trades, exit when you are supposed to, and give the system several trades at least to pan out.
Is Penny Stock Prophet A Scam?
The short answer to this question is no, Penny Stock Prophet is not a scam. The long answer is more complicated.
Alerts are sent as promised, James Connelly turns up clean in our own background check and the product is guaranteed for 60 days. The guarantee is underwritten by Clickbank Inc. which takes the money for the purchase and passes it on to the seller client.
Clickbank Inc. pays refunds immediately to the buyer (without question), and then gets it back from the seller by withholding subsequent product sales. This way we can be sure we’ll get our money back and it’s as easy as clicking an automated link in the email you get when you buy it.
The dictionary definition of the term ‘scam’ is “A fraudulent or deceptive act or operation”. By virtue of the alerts you get, Penny Stock Prophet does not fall within this categorization.
Those who buy it, try one pick, make a loss then brand it a scam are not doing it justice. Nor are those who get greedy and hold on for more gains, only to get caught out.
Furthermore, Penny Stock Prophet has been going since June 2008, and if it really was a ‘scam’ it would not still be around. Clickbank Inc. for one would have terminated their account as their reputation depends on the integrity of their vendor clients.
The question really is “Is it value for money?”.
The only reasonably accurate way to evaluate this is to look at how many customers are returning the product. This information is available at Clickbank Inc. and shows Penny Stock Prophet to have a refund rate at around one in 500 purchases (0.2%).
Penny Stock Prophet Review
Provided you follow the instructions in the alerts and act quickly with your trades, you are very likely to succeed in the longer term.
Remember this penny stock advice, penny stocks can be very volatile and you won’t get much time to bail if the direction turns against you. Conversely, penny stocks can multiply in price very quickly, and if you’re on the right side of the trade you can profit considerably.
Some have made their fortunes with penny stocks and there’s no reason this couldn’t be you.
If you’re still on the fence then can I suggest the same to you as I do to all of my clients, and that is you’ll never know until you try, and you don’t have to risk anything until you are sure.
By that I mean you should use dummy (no money) trades until you are confident James Connelly’s picks actually work for you.
You have 57 days from your date of purchase to get a full refund, which is more than enough time to test the system. As mentioned before, the product is sold through Clickbank Inc. and they will guarantee your refund for that time – just make sure you claim your refund before the 57 day deadline passes.
Clickbank Inc. has a solid reputation and is one of the biggest, if not the biggest sales network on the internet. They will not jeopardize that reputation by not meeting the refund obligations of their vendors.
With Clickbank Inc., refunds are simply a matter of clicking on a link in your confirmation email.
With 57 days to do multiple dummy trades you’ll know for sure whether Penny Stock Prophet works for you before you risk any money on real trades, and Clickbank Inc. will ensure you get your money back if it doesn’t. So what have you got to lose?
May we wish you the best of luck with your trading. We hope our Penny Stock Prophet review will help you make an informed decision.
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