How to find profitable valuable penny stocks

Ever wonder what it takes to discover a valuable penny stock? There are many who promote their ability to find gold among the low value stocks. They fill the internet with their successful choices with the goal of getting investors to join them in their profitable selections. Many of these promoters are paid for their ability to promote a companies stock. when a stock is heavily promoted, we forget to consider who is doing the promoting. We get caught in the news releases and buy in to their reality. The real question we must ask is can an individual investor find valuable penny stocks on their own.

I have been both successful and failed with my investments in this market. Was my success based on luck or my choice in the stocks I bought. If this is true, then my failure, was it unfortunate luck or a poor decision. Having an opportunity to reflect on what occurred is important to my future success. What I didn't understand is how the economy affects my decisions. My success was based on discovering penny stocks that met a criteria of growth during a time when the dow was moving up and investors were moving to penny stocks. My criteria worked with this condition. During an unstable dow, I discovered my method would not work due to investors leaving the penny markets due to their risk and opportunity for greater loss. My method would not work during this investing period. It tells me I have yet to discover the best criteria for finding valuable penny stocks during both phases of the markets.

You don't know me from Adam yet I am asking you to believe my analysis of finding valuable penny stocks. My success saw my portfolio go from $1000 to over $12,000 in a period of a few months. I didn't keep track of all the decisions I made during that time, not realizing I would one day want to write hubs to help other investors. My method was based on three factors, positive news, volume of shares traded indicating an opportunity for profits and their high and low for the last year.

Remember this did not work in an unstable Dow. I knew the market is cyclical, eventually the unstable dow will stabilize and investors will once again look to the penny stock market for profits. My premise was to continually review my method with the idea positive results would once again be possible with my method. This required me reviewing a couple hundred stocks, selecting a few to watch and track, with the idea my method would again work. On March 21th I created a list of 7 stocks of interest from over 200 stocks I reviewed. The stocks are:

BYOC Price$.03 a share volume 10,825 low $.0074 High $.16

Todays price $.0099 volume over 18 M News very positive Lost money with this stock. Good news is volume is up as interest in the companies news is positive. Over time this stock should move to its high of $ .16.

ADNY Price $.03 a share volume 3130 Low $.01 High $.07

Todays price $.02 volume up 28,700 News not as good, more of an energy low priced play with gas prices rising. Potential good, not so much on news but a hunch. Another loss. Stay with me to see if any of those identified pays off.

CHDO Price $.0088 a share volume 322,105 Low $.0085 High $.01

Todays Price $.0085 volume up 774,550 News excellent Revenues up, great news, more interest in the company, share price should skyrocket. Call this one a push, still believe in this stock. We are only looking at a 3 week window for success now.

MJNA Price $.04 a share volume 862,302 Low $.03 High $.23

Todays price $.16 volume 636,031 A big profit within 3 weeks Great concept, good volume and news. I am one out of 4 right now, 25% success.

EVCA Price $.03 volume 2.72 Million Low $.0025 High $.14

Todays price $.03 volume 1.66 Million Good news a push. Positive news in a good economy of higher prices at the pumps, green cars. Still believe in this stock.

SINX Price $.09 volume 151,300 Low $.04 High $.20

Todays Price $.17 volume 3.66 Million Excellent news Another profitable selection

RCMH Price $.01 volume 48,999 low $.006 High .20

Todays price $.01 volume 48,999 Press releases good, positive news with star power, a push

Two of the seven have moved up providing profits if I had invested. Two are pushes, not really losing, not really profiting., 3 are losses with potential to move upward.

Did my formula work?  For two of the stocks it did.   The real question is would I have chosen these two of the seven to invest in if I had the money.    The answer is I don't know.   Not having the money, I didn't take the extra step to review them for investing purposes.   My goal was to test the criteria I have chosen to find valuable penny stocks.  The only test to determine how successful I was is to determine the results if I had bought 10,000 shares of each penny stock.   The two successful companies would have earned me $1800.  My losses from the other 5 would have been $340, total profit for the short period of time would have been $1460.    A nice profit indicating the criteria I chose worked in this instance.  Volume was good on the two profitable stocks, a good sign I would have been able to sell the stocks for a profit.  Selling at this time is the smartest thing I could do, rerun the criteria and reinvest in a new group  The new group may include the same stocks or new ones that meet the criteria selected.  

Finding profitable penny stocks requires a continuous review of your criteria and knowing when to sell.    Selling for a profit now would create more investment funds to use for other opportunities. Will my two success stories continue to climb.  If they continue to meet my criteria I would possibly hang on.  If not or I find other stocks with better opportunity for profits, I would have the money to invest.   My criteria requires a sale.   I find It best to take profits and let my criteria choose my next investment, which may include the same stocks.  It is too bad I wasn't able to invest in any of these companies, not having any extra cash to invest. We will see how accurate my method is over the next few weeks to months. Good luck