How to Find profits in the chaotic penny stock market

I have found penny stock investing an exciting adventure.  The promise of wealth is always present, believed to be attainable.   In our minds what we read about those who have succeeded in this market can't be that hard.   Penny stock promoters are great at writing news releases, promotional pieces, with a slant towards the success of those who buy the stock now.  Their reasons are convincing, believable.  Many take the plunge, buying quantities of 10,000 shares, with the hope of pennies becoming dollars in a short time.  For every penny it moves up, $100 is earned on paper.   A nice profit when realized.  We all want what is easy.   We want to believe what we read is true for us, forgetting in most instances what we invest in is actually nothing more than a way for those who hype the stock to make money.   Lots of money is exchanged hands during the flurried buying of new buyers getting in on the ground floor of something big.

We love hype, we love to dream with the idea we will make it big one day.   When burned we are cautious for a while believing all penny stocks are alike, a legal way to steal money from sucker investors.   For those of us who are continuing to want to make it rich in stocks continue to come back to the market when the next heavily promoted stock comes to the scene.  It is the beginning of a vicious cycle, difficult to break without loss after loss.  The adrenalin rush of watching a penny stock is exciting, like a drug it holds us until reality hits us as the stock plummets as quickly as it rose. 

When we do break free, we either stay away from the market or look to stocks traded regularly and not considered penny stocks.   We may read books about value investing in stocks above $5.00, a point where stocks are no longer considered penny stocks.  The penny stock market, now distance becomes lost behind the prevalent clever marketing of those making money from their promotion.   The thought penny stocks have value is heresy.    Much of what you read about penny stocks is they are companies with little sales, no profit, large number of shares, noted they may not be around in a year if they are not able to find additional capital.

Our mind doesn't distinguish good investments from bad investments in penny stocks.   They are all in the same category.   Losers!!!!!!!   When this is the thought process, we fail to look further to discover the gold in penny stocks.   There are undiscovered companies with share value considered penny stocks with sales in the millions, earning profits.   Their share price is low compared to companies over $5.00 a share with similar sales and profits.  

Our minds must be used in order for them to work.   Minds were never meant to be slaves to what others think, with actions based on promotions we read.  What we must realize is companies with share price considered to be penny stocks can be found with value and underpriced.  

I write continuously about APNX, a small company with 20 million in sales, profitable the last few years continue to be managed to maintain sales in a difficult economy.   This stock is currently priced at $.10 a share.  10,000 shares for $1000 plus commissions.   Is there value?

For those who want to believe in hype, no.   It takes along time for the market to catch up to value in penny stocks.  It is just to good to be real!!!!!! or is it too good to miss.

It is a matter of hype or value on your way to millions.