I’m sure you have heard of the Pre Promotion Stocks newsletter by now so i’ll give a quick overview of their unique value proposition and then we’ll talk about whether this trading strategy is a legitimate service or just another online hoax.

The concept of Pre Promotion Stocks is really, really simple. They send an email that tells you about penny stocks that are very likely candidates for near future stock promotions. For the penny stocks that do get promoted, Richard Appel’s subscribers have the opportunity to buy before the paid newsletters start pumping the stock. 

In other words, his subscribers buy the stock in the “Pre Promotion” phase (before the stock promotion starts) and then sell it during the “Pump” (when paid newsletters start their campaign).

It’s a very sound trading strategy… but does it work?

On the http://www.PrePromotionStocks.com website Richard Appel documents 5 trades that gained an average of 114.6% per trade:

ETEV gained 24% over one weekend in late 2009; ARTS bought on January 4th, 2010 for a 157% gain; GRPR bought on April 15, 2010 for a 57% gain; ZLUS bought on May 7, 2010 for a 31% gain; and BLGW bought on January 27th, 2010 for a 170% gain.

(Like I said earlier, these 5 trades were documented in a video on Richard Appel’s site).

But i’m a skeptic, and I wanted to go beyond these 5 trades so I invested $124 into a lifetime subscription of Pre Promotion Stocks (didn’t have anything to risk, they have an iron-clad, no questions asked 100% money back guarantee).

During the past 7 weeks from July 10th – August 30th Richard Appel alerted the following “Pre Promotion Gems” (his highest level of confidence):

SILA was alerted on July 12th at $0.77 and hit a high of $1.21 for a potential 57% gain; CRPZ was alerted on July 22nd at $0.28 and hit a low of $0.15 for a potential loss of 47%; HELI was alerted on August 16th at $0.062 and hit a high of $0.113 for a potential 82% gain; KHGT was alerted on August 23rd at $0.20 and hit a high of $0.40 for a potential 100% gain (then it collapsed back down to $0.20 for a break-even trade); MYNG was alerted on August 27th at $0.19 and it’s unchanged since then.

Out of these 5 “Pre Promotion Gems” I received over the course of 7 weeks, 3 were big winners, 1 was a big loser and 1 was unchanged.

Hypothetically, if I started this 7 week stretch with $5,000 and re-invested all proceeds it would have turned into $15,144.22 (keep in mind this does not account for trading commissions).

And to give Richard Appel a bit more credit, all 5 “Pre Promotion Gems” went on to be promoted by numerous stock newsletters. Apparently he does know how to find upcoming stock promotions after all.

So there’s my take on Richard Appel’s “Pre Promotion Stocks”. It’s not a flawless trading strategy but it’s far superior to James Connelly’s Penny Stock Prophet. I did make a hypothetical profit and I always felt like his intentions were in the right place (he doesn’t get compensated for picks, he doesn’t use hype and he tries to explain all his rationale in great detail).

Hope this helps anyone out there thinking about investing in Richard Appel’s www.PrePromotionStocks.com trading system.

- About the Author: Jenn Rayne was employed with the Boeing Company as an electrical engineer before getting laid off in 2009. Since then she has done consulting work as a freelance writer and has taken a keen interest in learning the finer details of stock trading using technical analysis. Article Source

Boca Raton, FL- August 21, 2010 TheStockWizards.net, a Top Penny Stock Newsletter Awareness Portal, presents stocks that have impact news and positive technical charting indicators on the OTC BB: and Pink Sheet markets. In addition to our newsletter, TheStockWizards.net is quickly becoming the fastest growing network destination for Penny & Micro-Cap stocks. With our over 30 years combined experience, our team of research analyst pride themselves on small cap companies that are diamonds in the ruff.

At The Stock Wizards, we analyze daily market activity and provide our members with our technical outlook, winning stock picks, a weekly top ten list, industry discussion, and daily trading tips from the Traders Corner section of our website.  We follow certain patterns and bring you break out alerts, volume spikes, breaking news, upward trends, mergers and more.  The Stock Wizards provides small cap investors and traders with the necessary tools and information to make informed decisions. We do all the research for you and send it straight to your inbox.

(1) LQMT (OTC) Sector: Chemicals & Allied Products

LQMT — Liquidmetal Technologies, Inc.

Is LQMT ready for a rebound? TSW stated last week a break below the $1.00 level would create a lot of volatility and very nice bounce plays. That’s exactly what we got. With the stock approaching the 20-day moving average, traders and investors will be keyed in on this technical event.

If LQMT can hold the moving average, we could see a nice rally in the stock. The volume has basically dried up. Each day the stock has dipped, volume has been increasingly lighter.

As we stated in our latest technical analysis video, we were a little concerned that there is a gap to fill at the .29 cent level. This technical event of filling the gap still remains to be seen in the short-term. Major support levels this coming week are .56 & .50. Major resistance is .82 cents.

(2) LBSR (OTCBB) Sector:  Metal Mining

LBSR — Liberty Star Uranium & Metals

Can the Bulls push this stock to a 80-100 million market cap? The stock has been on an incredible run. TSW will be watching for any signs of those short-selling market makers known as the rat pack. Their specialty is to look for stocks with very high market caps. Support Levels are .10 then .05 cents. Resistance levels are .15-.20 cents.

(3) VKNG (OTCBB) Sector: Electromedical Equipment

VKNG — Viking Systems, Inc.

Classic consolidation on VKNG. The stock had a major run last year. Will he do it again? Very nice chart set up. Can the Bulls send us higher.

(4) IDTA (OTC) Sector: Law Enforcement

IDTA — Identa Corp.

IDTA is flirting with a breakout above the 200-day moving average. The stock has been a traders delight as it has consistently made moves over the years, and seems to be ready again.

(5) QASP (OTC) Sector:  Areo Space

QASP — Quasar Aerospace Industries, Inc.

QASP has pulled back roughly 50% off  its lows. The stock is in the middle of the range and a weekly close below (.004) could be a momentum killer. The 50-day moving is getting closer to the price action as traders and investors will be watching for a breakout above this in the near future. The Bulls have their work cut out for them.

(6) MUTM (OTC) Sector: Financial Services

MUTM — Mutual Merchant Services, Inc.

Traders and Investors were anxiously looking for the weekly close above (.0004) cents. The stock briefly traded above those levels but could not hold it. Can the Bulls take control this week? All eyes are on the (.0004) level.

(7) APCX (OTC) Sector: Mobile Applications

APCX — AppTech Corp.

AppTech is in the business of developing mobile applications for international markets throughout the world. The company is focused on multi platform apps designed to run on device operating systems such as the Apple i-Phone, Google Android, Research In Motion, Microsoft Mobile, Palm, the O-Phone in China, and others.

According to public records, shares outstanding is over 2 billion. TSW thinks the upside potential is .02 cents on a conservative basis. The 50-day moving average is currently at (.0083) going into next week’s trading. Traders and investors will be watching for a move to this moving average in the near future. If the stock can get above the psychological (.005) cent level or consolidate near those levels for a few days, the Bulls could be rewarded very nicely on the upside.

(8) SFMI (OTCBB) Sector:  Mining

SFMI — Silver Falcon Mining, Inc.

TSW is always looking for low risk trading opportunities. SFMI presents itself as a low-risk opportunity in our opinion because the stock is trading right at its 200-day moving average. Very simply, if it holds a 200-day moving average you are long. If the stock breaks below the moving average, you should get out. It’s that simple. Major support areas will be .10 and .12 cents.

(9) BDGR (OTC) Sector:  Oil & Natural Gas

BDGR — Black Dragon Resource Companies, Inc.

Commodity stocks are dominating summer trading. Here is another example; BDGR a natural gas stock is looking very attractive, as it is getting ready to break above the 50-day moving average. Traders and investors will be watching this event very closely as the MACD just crossed above the zero line which is an indication momentum is coming into the stock. We could get on a nice run.

(10) SFNL (OTCBB) Sector: Short-Term Business Credit

SFNL — Secured Financial Network, Inc.

SFNL just got a weekly close above its 200-day moving average. This draws a lot of attention to traders and investors when stocks break above this moving average. A breakout above .12 cents could really send the stock higher. SFNL looks very undervalued at a 5 million market cap.

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- About the Author: The Stock Wizards is a Premiere Financial Portal & Investor Relations Firm that brings a wealth of trading resources to Small Cap Investors. We analyze daily market activity and provide our members with hot stocks to watch every day. We follow certain patterns and bring you break out alerts, volume spikes, breaking news, mergers and upward trends.   Article Source