One of the more controversial penny stock marketers is James Connelly, the “Penny Stock Prophet”.
Of course his real name is not James Connelly, nor is he a prophet in any sense of the word. It’s all just an internet marketing gimmick, as you are all probably aware.
In addition to the fake testimonials and alluring images of fast cars and pretty woman on his website (which you will never see here), he boldly claims that you can turn $1,000 into $1 million in 38 trades. He even shows a table “proving” it. It shows 38 trades, all gaining 20%, and he shows that you need to invest ALL of your capital into each trade.
For example, the first trade is with $1,000. After a 20% win, you now have $1,200. You reinvest this for another 20% gain, and you are left with $1,440… so on and so on until you are a penny stock millionaire.
What the “prophet” fails to mention is that not all of his picks are winners, let alone 20% winners. We have seen many of his picks flop, some even falling as much as 40% in one day!
But the worst part of his magic formula is that it assumes you must invest 100% of your capital into every trade. This is not only crazy, its down right irresponsible for ANY stock picker to suggest their members do. Does he really think that anyone is going to invest $200,000 of their hard earned money into one penny stock? That’s just nuts.
There are two basic rules to investing in ANYTHING that James Connelly “Penny Stock Prophet” doesn’t tell you about.
1/ know when your wrong and cut your losses quickly, and;
2/ don’t commit too much of your capital into any one investment, no matter how confident you might be.
But are his penny stock picks any good, and should you subscribe to his site?
We’ve given James Connelly a test run so we can report accurately on his performance.
His last stock pick was PLPL. The stock traded with average volume and dropped 21%. His pick before that, VIBE, sank 33% and was down more than 50% intra-day.
To be fair, we all pick losers from time to time, but what are his winners like? One of his more recent picks was LIMO that jumped a whopping 12%!
So let’s do the math, if you started with $1,000 that James Connelly (the Penny Stock Prophet) suggests, and invested in his last three picks, you would have lost of nearly 1/2 your initial investment ending up with $594.
So as you can see, turning $1,000 into $1 million with his picks is nearly impossible.
And to make matters worse, he charges his members a one off fee of $99. Now this wouldn’t be so bad if he didn’t also receive payment for promoting the stocks he alerting his members to. That’s double dipping, and its just plain WRONG.
A quick Google search of Penny Stock Prophet will reveal many dissatisfied ex-subscribers who are only too willing to report that truth about him. In fact, we have many members who used to subscribe to him saying the same thing.
So in a nutshell, yes, you theoretically can turn $1,000 into $1 million in 38 trades, just not with James Connelly’s “Penny Stock Prophet” picks. We suggest you move on before being sucked into his internet marketing BS.