I tend to look at my search logs occasionally and have noticed a few searches for the phrase Penny Stock Prophet out of the blue. Of course this peaked my curiosity and I did a bit of research about the Profit of Penny Stocks and all I could find is his long sales page and hundreds of paid affiliate reviews.
I hate long sales pages and normally refuse to buy anything from them because I smell SCAM. But in this case, there is a 30 day 60 day money back guaranty and I will ask for a refund if his system does not work within that time frame if this turns into a negative Penny Stock Profit Review.
Also, I will write an honest revue of how well the Penny Stock Prophet penny picking system works. This will not be a sales pitch, just a log of my experience with the system.
My main business is website marketing and I know people that write long sales pages over and over and over to get as many sales as possible per landing, with these things it’s all about sales conversions. The penny stock prophet sales page is one of the best I have ever seen, so stay away if you can’t control your buying habits until I finish my full 8 week review of the Penny Stock Phophet penny stock trading system.
The Penny Stock Prophet claims are:
- He is a M.I.T. Graduate (implies smart);
- He built an algorithm that predicts stock behavior;
- He took $1,000 and turned it into $1.4 million and;
- He’ll take hundreds of his buyers and show them how to be millionaires.
With these get rich web sites, I always wonder why they are selling the secret sauce if their secret is so good. In this case, I suspect if his system works at all it is because the buyers of his system buy his stock picks, driving up the price. Most likely it has nothing to do with an algorithm that magically finds winning stocks. The safe bet is he picks stocks ripe for manipulation and starts a major pump and dump. But we’ll see in my reviews of the Penny Stock Prophet penny trading system.
As I mentioned earlier in this post, I found myself slightly ahead on his picks but was holding off on a conclusion until I had a chance to trade more picks. I still haven’t come to a final conclusion but am getting closer.
I looked back at some of my previous trades and noticed I was leaving profits on the table and missing small spikes the brought stocks into his sell range. So I figured I need a system to play his system. First I had to use the knowledge I picked up trading his stocks for the first three weeks or so. I noticed a few things about his picks:
- He picks stocks that had very small down sides.
- After a quick jump, many stocks seemed to trade sideways with quick spike ups, then back down.
- The fast price jump on some of his picks makes it difficult to get in below his buy price because he is getting many followers.
- The constant flow of new subscribers into his picks seems to prop up his stocks from becoming big losers, at worst losses have been limited to a few percent
Based on these observations, I decided to implement the following strategy for each of his picks:
- Put my buy order in before the market opens with a limit price a bit above the Penny Stock Prophet’s high buy range.
- As soon as I get the shares set up a Limit sell order at the low end of his sell price (I look at the chart to get an idea what the best price might be)
- Also set a stop loss about 20 percent below my by price.
- Watch the chart if possible and adjust #2 and #3 as needed – this adjustment is based on how the stock is trading.
This system has yielded profits on 4 of the penny stock prophets last 5 trades so for now it is working. During this same time, my older brother who ordered the Penny Stock Prophet picks was complaining he has yet to have a decent winner while I am making money. I found that he was out of most trades before the stock moved because he was setting very tight stop losses which took him out of the game with a bunch of small losses. Since the Prophet’s picks don’t seem to crash and burn, an extremely tight stop loss is not really necessary. My loose stop loss keeps me in the trade and will prevent disaster just in case a stock has some unexpected bad news.
One trade that just finished this week illustrates how I made money on a Penny Stock Prophet pick “INTT” that was given last Monday. Here is what the penny stock prophet said in his daily stock pick email-
Buy Point: $0.50 and under
Sell Point: $0.70 – $0.90
The formula flagged INTT this weekend for a buy point. INTT is a solid company, and at this price it’s a bargin. The tech and gov sectors are going into recovery and I expect to see INTT benefit from it. At it’s current price ($0.45 a share) I think it’s a steal.
Now the stock is back trading flat around .60 and I am glad I am out. Also the penny stock prophet ended trade on this stock because it hit his sell target twice in two days.
After A Couple Weeks Of Using His System
This is the start of week three using the Penny Prophet System. Week one I started trading the Penny Stock Prophet picks but there were no new picks that week so I jumped into some of his ongoing picks. One of these 3 stocks the Stock Prophet gave the sell order around break even saying it doesn’t look like this stock would move like his algorithm predicted. The other two stocks are still in play, they both have been floating around my buy point, which is better than losing but still not a win. The Penny Stock Profit advice on these stocks is to hold for another week or two as there should be a jump in this sector soon.
Week two brought just one quick pick. The advice was to buy for a quick 18-20% gain. The same day, the stock reached its goal and I took a quick profit. The rest of the week provided no action as all other stocks are buy and holds.
Today, the start of week three, finally there is some action. In his nightly newsletter, the prophet gave out two new picks, one a quick day trade that I got in above the high end of his buy price and out at his sell price within minutes of today’s market open. It seems the Penny Stock Prophet investors pushed this one up too fast premarket for people like me to make more than a small profit (I would have loved to have this pick on Friday).
The other trade for today is slightly longer term and I am up about 5% so far but hoping for at least 20% – my sell order is in and fingers are crossed. Besides the quick pick last week, these are the first two picks I got in from the start. This will give me a much better feel for the opportunity to make money.
Hopefully I can take some decent profits and report good news and give a good penny stock prophet review. My other hope is one of the buy and holds from week one takes off instead of trades sideways.
My impression of the Penny Stock Prophet remains slightly positive for now. I like the way he tells his followers exactly how to trade a stock with buy and exit points. His nightly updates offer reassurance that someone is watching your trades tick by tick.
The bottom line is that I am only up slightly and now am now invested in four of his picks. All the advice and hand holding in the world does no good if money is not being made. It is still too early to tell one way or another for a solid recommendation. However, even if 5-10% gains can be made per month with this system, it would be worth it because most all the work is done for you, the Penny Stock Prophet followers just need to follow instructions.
Stay tuned for some more detailed reviews as I gain more experience with his system and picks. You can bookmark or follow the RSS feed from my Penny Stock Prophet Reviews page if you want to make sure you are completely up to date on my experience with the system.
And the verdict is!
After trading the Penny Stock Prophet’s picks for a while I have determined that it is difficult to make money because the price jumps quickly above his buy price after he releases his picks. If you decide to get in above the buy in price you risk a downtrend after his followers start bailing with small profits.
You can only consistently make money if you can get in before the price goes up too much from his follower buying spike, if you get in below the recommended price, I would recommend you get out after 10 or 15 minutes if the stock is doing nothing after the morning spike.
If you are willing to buy enough shares so that a few penny gain is worth your while, you can make some money with this strategy, then again, you need to risk a lot of money to make a few penny gain worthwhile. Otherwise, profits are fairly hard to come by.
In general, his picks follow the following pattern:
Pre-pick: Slow trading stock stock with not too much volatility.
Pick Announcement: Race to get in and stock jumps right at the market open often going past the buy in point recommendation before you can get in.
After pick: Stock starts to come back down to pre-pick levels as followers cash in.
If you have a fast acting online broker you may be able to make a few bucks, but the person making the real money would be the Penny Stock Prophet, that is if he is taking a strong position the day before he announces his pick. I doubt there is a magic algorithm that he uses, his picks go up because he has a lot of followers that buy when he says buy.
A few of his picks have had steady gains but some of those may have been difficult to get in at the buy price target. Others have trended down after the early bump in price. All in all, besides the effect of his followers quickly pushing up the stock price after each pick, it seems fairly random whether the stock pick price will go up, down, or flat.
Below is a snapshot of his recent picks that are no longer in play. If you want to try active picks you need to test his service. On each of the picks below, he either stopped covering them because they touched the sell point or did nothing and just fell off his buy lists.
I list the Penny Prophet’s buy price recommendation, and the target sell price. Look at the charts and decide whether this system is for you. I have mostly put a red line at the morning of each buy recommendation so you can see what his picks do. There is an opportunity to make money but the margin for error is very slim.