Article by Jeffrey Scott:
If you haven't yet heard of James Connelly, it's probably because he is more commonly known by his nickname, "The Penny Stock Prophet," given to him by his peers due to his uncanny ability to discover "breakout" penny stocks just days before they experience RECORD gains.
In the last 12 months, Connelly A.K.A "The Penny Stock Prophet" has become an internet sensation due to his stock picking strategy, that has changed the lives of hundreds of his followers.
As a 19 year-old college student, Connelly excelled in his studies. In his own words, "School was just something that always came naturally for me. It was too easy, and over time I just started to lose interest. I wanted something different, I needed to find something else to challenge me. That's when I decide to turn to trading stocks."
Connelly always had an interest in the stock market, even at a young age. When he was still a teenager, Connelly's father taught him how to read charts, and quarterly earnings reports. "My dad even got me a subscription to the Wall Street Journal for my 16th birthday, " says Connelly.
Having an understanding of the fundamentals of the market, at such a young age, was advantageous to Connelly's eventual future as an investor. The prospect of riches, and the unlimited possibilities that the stock market offered, soon began to recapture Connelly's imagination.
"The stock market to me was just a big puzzle. It fascinated me. I felt that if I could figure out the pieces to that puzzle, I could develop a strategy that would give me a huge advantage over other traders," Says Connelly, "I knew it would take a lot of trial and error, but I was convinced I could develop a method that would give me an edge in finding the next breakout stock."
On a whim, Connelly opened his first trading account his freshman year in college. "Initially, it started off has just a hobby. I wanted to learn the process, and start small. Once I figured out a strategy that could win consistently, then it was time to turn it up a notch."
Connelly began like any other investor. Studying charts, utilizing resistance calculators, analyzing financial reports, and re-learning the basic fundamentals of trading.
Connelly's hobby soon became an obsession as he began skipping his classes, preferring to spend the majority of his time researching and trading stocks.
"I was making more money from my dorm room than most people make at their jobs, so I just figured going to class was a waste of time. I was on to something, and I wanted to keep the momentum going."
To Connelly, spending the day trading was more exciting and satisfying than sitting in a classroom being lectured. Eventually, college became an afterthought.
Over the next few months Connelly spent hours in his dorm room pouring over charts, analyzing trading patterns, volume, resistance levels, and any other identifiable factors he could find to help him identify a point when a stock was about to experience a bullish trading pattern.
Connelly was convinced that that winning stocks must have similarities, and that if those similarities could be discovered, it would be the key to identifying breakout stocks before they happen.
"I felt certain that I could create a strategy that could identify a breakout stock, before it began to rally. There had to be a signal, something that could be used as an identifier to 'red-flag' a stock that was about to see a major move."
Connelly eventually discovered 4 key variables that he believed was the secret to identifying a breakthrough stock. To this day Connelly has not released these variables to the public.
"I've been offered a lot of money to sell my strategy, but that's not going to happen. I want everyone to have the opportunity to profit from my strategy, not just someone who will pay millions for it, and keep it all to themselves."
What Connelly is willing to share with the public, is how identifying the Psychological Support Level (PSL) of a given stock, is the key to his method being so successful.
"While the 4 variables I discovered are still a closely guarded secret, what's not a secret is how PSL can be catalyst to finding breakout stocks. It is the 'match' that lights the fire." Connelly continues, "Most people don't understand how incredibly important PSL is, in discovering under-valued stocks that are about to skyrocket."
