The 3 Best Penny Stocks Under $5 with 400% Upside

These penny stocks have a huge upside…

This story was originally published here.

There have been many boxers that entered the ring with just a puncher's chance. They weren't the best students of the sweet science, and they often took a lot of punches from more skilled opponents. But if they made good contact during the fight, they could beat anybody.

Penny stocks are the big punchers in your portfolio. Maybe they don't have all the flashy traits of bigger companies, but they have the chance to outgain any of them.

And one of the best ways to find these contenders is to look for turnaround stocks. These are companies that have already shown they have knockout power; they're just getting off the mat right now. You can find them trading for under $5 a share even though their past highs are much higher than that.

Low-priced turnaround stocks are the big punchers of your investment portfolio. They will get knocked around and be fairly volatile in the early stages, as all the news appears to be awful. But when they pull themselves together and get the business back on track, you can be looking at gains of five, 10, and even 20 times what you paid for your shares in a very short period of time.

To help you find these contenders, we've done the research and found three penny stocks under $5 that have a puncher's chance to be the biggest gainers in your portfolio…

Editor's Note: To keep reading, click here.

This World-Renowned Angel Investor is Sharing his #1 Secret to Pre-IPO Riches

Investing in startup companies can be one of the easiest and most profitable opportunities available today. With startups, you're getting in at the earliest possible time.

That means you're in line for the biggest possible gains – way more than you could get from the stock market.

Investing in startups used to be reserved for the mega-rich… the millionaires and billionaires of the world.

But thanks to a recent groundbreaking piece of legislation, the doors to this private market have been blown open.

As of today, any person above the age of 18 can invest in these incredible startup companies… and you don't need tons of money to get started.

Here's what you need to know:

Step 1: Transfer $50 into your checking account

Unlike most other types of investments where you need upwards of $2,500 and a verified brokerage account to get going, investing in startups is easy and affordable.

  • You can do this without a broker.
  • You can do this without completing a single piece of paperwork.
  • You can do this with as little as $50.

In most cases, your investment comes directly out of your checking account!

So to get started, just transfer $50… $100… $500… however much you'd like… into a checking account of your choice.

Step 2: Find a startup that excites you!

Next, it's time to figure out where you'd like to invest that $50.

Whether you're into technology, health, entertainment, food… there are literally hundreds of thousands of startups available to anyone over the age of 18.

That's far more opportunities than what you'll find in the typical stock market – and dozens more startups are coming online every single week.

I'm talking about companies like…

Instagram.

People can't buy shares of Instagram today – they're not on the market. But you could've gotten in during the startup phase…

From their startup days to when Facebook bought them – the value of Instagram jumped 47,519%.

Anyone who was smart enough to invest even $50?

Well, they turned that $50 into $23,809.

$500? That would've turned into $238,090.

Or Uber. Now, this example is utterly exceptional – but get this:

If you had invested even $50 in Uber just a few years ago, you'd be sitting on $1.2 million today.

It's completely absurd – and, of course, your $50 could have gone poof right into zero… but find a winner like Uber, and you're set for life.

If you were to stick with conventional stocks, you can expect to need at least $2,500 just to open your brokerage account. Then, you have the usual (meager) 7% return per year to look forward to.

But with startup investing, you can experience absolutely insane returns … and it's so much more affordable to get started.

Just choose a startup that excites you, and it's on to step 3.

Step 3: The Fun Part…

Once you've got your $50 ready – and once you've identified what kind of startup you want to begin with…

The next step is the fun part!

It's also the place where the most successful startup investors are separated from the herd – where the true millions of dollars (and, in some cases, billions) are made.

This step is covered in full detail by serial entrepreneur, Neil Patel and Shark Tank's Robert Herjavec in a recent video.

Watch and you'll learn how you could access two time-sensitive deals with huge upside.