This powerful strategy maximizes returns… while actually reducing risk! And it does it using the most volatile stocks in the market.

But let me confess. The underlying principle is actually “old news”. Literally. You see, back in 1886, at the Naval Torpedo Station at Newport, Rhode Island, U.S. chemist Charles Edward Munroe made a chance discovery.

While experimenting with explosives, he noticed a curious thing: An explosive charge with a cavity facing the target left an indentation in a thick piece of armor plate.

Turns out that a little dent in the surface focused the effect of the explosive’s energy.

In Munroe’s honor, they called this phenomenon the “Monroe Effect”.

Today, the principle is employed in high-explosives technology, from armor-piercing grenades to the most sophisticated oil-exploration equipment. Ammunitions specialists call it a “Shaped Charge”.

Imagine: Just a little divet in the high explosive increases the chances for penetration by a multiple!

We’ve applied the Monroe Effect to stock trading.

In more than 20 years as a publisher of investing services, I’d never seen anything like it. Of course, it partly depends on the kind of “explosive” you use…

First, let me tell you exactly where we find our “high explosive”!You see, even in this market, it’s not really uncommon for some stocks to return 500%, 1000%, even close to 3,000% in just a few months.

Sometimes it only takes weeks.

Or even days.

* Stocks like U.S. Geothermal Inc. (AMEX:HTM). In November of 2008, you could’ve bought this stock for just 33 cents. By June 8, you could’ve sold it for $1.93… a gain of 484%!

* Or Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), which you were able to pick up for 50 cents as late as Dec. 31. On Aug.7, it traded at a stunning $15.52… for gains of over 3,000%.

* Or Dollar Thrifty Automotive Group, Inc. (NYSE:DTG). On March 3, this stock traded at 62 cents. The August high for this stock was $22.65 — a gain of over 3,500%.

All these gains were created… and in many cases taken!… at a time when thousands of investors gave up and turned their backs on the markets for good.

Crazy, huh?

What sets our method apart?

We actually made acceptable returns on both HTM and VNDA, booking 30% and 35%, respectively. Decent gains. But hardly the kind to retire on! Because at that point, we didn’t have the model quite figured out.

In fact, we almost overlooked the most important aspect! Some stocks are literally “invisible” to most investors.

You see, for many, stocks that trade under $1 a share are completely off the radar.

Think about it: Neither the New York Stock Exchange, nor the NASDAQ, nor the AMEX allow companies listing their shares on them to trade under $1 for long. In fact, stocks like Evergreen Energy Inc. (NYSE:EEE) are getting punished by investors after receiving delisting warnings from the stock exchanges.

After a few months trading below $1, companies are forced to delist… and start trading as Over-the-Counter (OTC), Bulletin Board (BBS) or Pinksheet stocks (PINKS).

That’s where many widely-used brokerages come in.

In an often-misguided attempt to “protect” their customers, they won’t let people buy shares trading for under a buck.

Think I’m making that up?

Check out the rules of ING’s popular ShareBuilder program. Or SoGo Trade… Or TerraNova…

None of them allows you to trade this potentially profit-rich category of stock… the very kind of “high explosive” that could turn your portfolio from a decent performer to a turbo-charged powerhouse!

By dropping below $1 for an extended time, an important catalyst in the dynamic growth of a stock’s price — demand surges from retail investors — is suddenly suspended! Or, more accurately, deferred.

These stocks become “invisible”! Literally!

Which is a pity.

Because as soon as a stock crosses the magic $1 limit again, it unleashes this pent-up demand… like a rubber band in a slingshot!

It’s these “invisible” companies that provide the high explosive necessary for our strategy.

What exactly causes the move in any given case is utterly irrelevant. It could be a trend reversal in the general market. A single large order. A favorable article on the web. A hedge fund buying up shares. Rumors of a buy-out… a take-over… anything.

Even a positive earnings release.

That’s why we’ve created a brand new information research service. We call it, predictably, Penny Stock Confidential.

At any given time, we’re looking at a cool dozen “penny” shares with INCREDIBLE potential…

There’s just one hitch:

You have no idea just how many cheap companies there are! And just how many of them a worthless junk!

It sometimes takes us days of research to isolate a single opportunity.

After all, there are almost 4 billion transactions taking place on U.S. stock markets every day. And there are hundreds of millions of shares traded that cost less than a dollar. Most of them will never make a nickel in profits. For the companies. Or for their shareholders.

But some will make up for the rest of them!

Here’s four rules we use to sift them out:

Rule One: Movement — We like to see some solid gains in a stock’s trading volume and share price before we recommend it. We like to see it MOVE! In some cases, we may even need to see price gains of 100% or more before we even touch it: The more an “invisible” stock moves, the better your chances are of actually making money on it.

Rule Two: Cash — If at all possible, we like to see actual revenues. Theyre not necessary… after all, great fortunes have sprung from stocks whose companies have never sold a thing. But a royalty payment, a landmark payout, even a medium-size order confirm one very important thing.

Rule Three: We call it PSST — Can you tell? We love acronyms! This one stands for Popular Speculative Surge Trigger. We have a saying here at our office: Look for a PSST and you’re going to make noise!

Rule Four: Confirmation — The signal we’re looking to for confirmation is moving averages. No magic here: But for rapid in-and-out trades, moving averages are important technical indicators. They level out the volatile day-to-day action of the equities market.

Much of the fast-moving up-and-down action is merely noise: A positive mention in the news. An angered blogger’s false rumors. Even a market maker selling shares to make room for a buddy. Thanks to the smoothing nature of moving averages, we can eliminate much of the noise and concentrate on what really matters, the overall trend.

According to our analysis, a small number of these undervalued “penny” stocks will undergo a rapid, super-charged period of growth lasting well into 2010.

This could last until December 2010… or these dynamics could die by June. No matter how long… the window of opportunity is closing as we speak.

You may be asking yourself: If this kind of “invisible” stock will outperform all other investments, why shouldn’t you just pick some yourself?

Be my guest…

If you’ve got plenty of capital to invest, by all means, go ahead…

You’re probably a very successful investor already. But in case you want a team of pros doing the grunt work for you, I have a proposal.

Let us sweat the details…

Members of Penny Stock Confidential will always know exactly when to buy and when to sell. When to let go of a trade that’s not going to work out. In our fast-moving research portfolio, we don’t tolerate laggards…

These “rocket-propelled” opportunities appear more often than you might think. And in some pretty surprising industries too: We’ve seen heavy activity in banking… retail… automotive suppliers… and, of course, biotechs!
Only the few

As an experienced investor, I’m sure you’ll understand that we have to limit our Membership. There are lots of stocks we recommend that are “Phoenix” stocks… former blue chips that now trade below or just above $1 a share. But which still have considerable trading volume every day.

Then there are the “Moon shot” stocks.

They can be quite illiquid. A few hundred thousand shares bought or sold could drive up prices… or send them crashing. To make sure we don’t unduly move a stock’s price with our recommendation, we’re restricting Membership to a very small group of readers.

We have to play this by ear. There’s no precedent that could reliably indicate to us exactly when such critical mass is reached.

Which means we cannot guarantee that Membership in Penny Stock Confidential will be available for long. Right now, we’d be happy to count you in.

This is my promise to you:

I run a publishing business. Legally, we cannot have a direct, vested interest in our recommendations. No pumping, no dumping, no pushing up and down prices.

It would destroy my reputation and my business.

The only way for me to make money is to have happy customers. And if I’ve learned anything in my 20 years in financial publishing, it’s that the happiest customers are those who’re making money using my services!

If you’re ecstatic with the quality of information and service you receive from us, I can grow my business.

So I urge you: Please, don’t let this opportunity pass you by.

Opportunities can materialize at any hour of the trading day

We’ll be sending you detailed instructions when to buy and when to sell. The only thing we’ll promise is that you’ll get a minimum of three trades a month. Based on our experience, it’ll be considerably more!

But hurry. I can’t guarantee that we have open spaces for long…

Take advantage of this one-of-a-kind opportunity and Subscribe Now.