Quantative Behavioural Finance and the Penny Stock Prophet

Quantitative behavioral finance is a new discipline that uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation. Noted economists working in this field include Vernon Smith (2002 Nobel Laureate in Economics). QBF takes its lead from Behavioural Psychology and essentially looks at the influence of human behaviour on share pricing and attempts to forecast future movements from there. This is pretty cutting edge financial work, and someone who taken insights from there and made practical application of the work is James Connelly better known as the Penny Stock Prophet. Whilst Connelly was still 19 and a college student he began trading out of his dorm room. Central to his trading strategy has been the Phychological Support Level (PSL) of breakout stocks. As he notes the PSL has been key in his trading success and in idenifying under valued stocks and when they will move. Connelly said his biggest trading successes began when he took the strategies he had leard from Behavioural Finance and applied them to the world of Penny Stocks. The large volatile price movements of Penny Stocks allowed for larger profits. Connelly runs a noted penny stocking picking service and offers to supply to anyone free proof of his stock picking prowess. In his ebook he also documents how within 38 trades he can move $5000 up to $1,000,000. For more information on this ebook and one free stock pick by James Connelly Click Here!