But investing in stocks doesn't have to be a "mission impossible." It is enough to follow a few essential rules of investing to achieve success. Scientists discover bizarre hell planet where it rains rocks and oceans are made of lava  If you thought living on Earth in 2020 was comparable to hell, planet K2-141b is here to prove you wrong.  On the scorching hot planet, hundreds of light-years away, oceans are made of molten lava, winds reach supersonic speeds and rain is made of rocks. Scientists have referred to the bizarre, hellish exoplanet as one of the most "extreme" ever discovered. (Read more: [( Life on such a "planet from hell" is certainly impossible. But investing in stocks doesn't have to be a "mission impossible." It is enough to follow a few essential rules of investing to achieve success.  Why is it that 75% of professional investors under-perform the stock market? Is it that they don't properly research the companies they invest in? Do they invest in industries they know nothing about? Do they let their emotions get in the way of intelligent trading decisions?  Well, all of these reasons are true. Is it not a sad reality however that even professional investors are losing in the stock game? This paints a bleak situation then for the average investor. After all, if the pros can't get it right, then how can we?!  Well, the playing field becomes a lot more level if you follow these 5 simple, yet very powerful, rules. Stock trading success no longer depends on whether you are a professional or casual investor; the highest probability of success is in the hands of those who simply follow these 5 rules.   Rule #1: The 1% Rule  Only risk 1% of your account (the money you have allocated to stock trading) on any one particular trade. By following this golden rule of fractional trading, it is impossible for you to ever reach $0 - it's mathematically proven! Quite simply, if you lose money, your investments get smaller and smaller. Consequently, the more money you make, the larger your trades become. This is the beauty of the 1% rule!   Rule #2: Make Use of the EPS Rating  Select only companies with an EPS rating of 90% or higher. Clearly the EPS (Earnings per Share) of a company are important. The EPS Rating goes a step further and states how the company is performing in relation to all other companies. In other words, a company with a 99% EPS Rating has outperformed 99% of all publicly traded companies in terms of earnings.  By selecting only companies with EPS ratings of 90% of higher, you are assured that you are dealing with the top 10% of all companies, and thus have very quickly helped narrow your focus down to a handful of companies. The simplicity of using the EPS rating allows peace of mind in knowing that you are investing in high performing stocks.   Rule #3: Use the PEG Ratio to Your Advantage  Remember this rule: the lower the PEG Ratio the stronger the buy. The PEG Ratio is derived by dividing the price to earnings ratio by its growth. Put simply, the PEG ratio unveils how cheap a stock is in terms of its returns. If the PEG Ratio is less than.50 then this is an extremely strong buy signal. A PEG ratio between.5 and 1.0 is still considered a valued buy. When the PEG ratio is between 1.0 and 2.0 the stock is still acceptable, in terms of risk adversity, but warrants further analysis. Ignoring stocks with a PEG ratio over 2.0 would be prudent as they are simply too expensive for what they return. Rule #3 saves you from investing in overpriced stocks.   Rule #4: 55 Day Breakout Rule  Buy a break of the 55 day high with a stop loss at the 20 day low. Conventional wisdom might suggest that you should buy on dips and sell on increases. That's easier said than done. Why fight the market when you can join the market? Take the highest price in the last 55 days and set a buy order at that price.  This way, you'll be getting in right when the price is pushing significantly higher. Set a stop loss order at the lowest price in the last 20 days and you will protect your investment and still keep the door open for maximum profits. As the 20 day low creates higher lows, you adjust your stop loss accordingly. By adjusting your stop loss to the higher lows, you guard your investments and ensure positive returns! The breakout rule maximizes your returns and provides a safety net to protect your profits.   Rule #5: Be aware of seasonality  Sell the beginning of May... see you after Labour Day. This is a very general rule and should not be interpreted literally. This timing does not always work; however there is a pattern of seasonality to the markets that is important to be aware of. Start looking for buy signals using Rule #4 in early September, and be on the lookout for sell signals in early April.  During bearish markets (summer) the Dow utilities tend to perform best, while in the bullish winter months the Dow industrials tend to perform best. A simple way to make a play based on seasonality is to research ETFs that mimic the Dow. For example, "IWM" mimics the Dow industrials while "IDU" mimics the Dow utilities.   There you have it - 5 powerful stocks investing rules that will give you an advantage, even over some of the seasoned professionals who fail to use these techniques! As with all investments, proper due diligence is required for all trades and the above rules simply serve as a starting point. The key is to invest wisely, using proven principles of stock investing, while always minimizing any potential risk. Always place your stop losses, accordingly, on all your trades. Wait a minute... did we just sneak in rule #6 there?  Stock trading doesn't have to be a foggy guessing game filled with treacherous pitfalls. The more you are able to systemize your trading, the faster and more profitable you'll become.  If you are you having trouble receiving your 8020Prosperity.com subscription, you can ensure its arrival in your mailbox by [whitelisting 8020Prosperity.com and members@8020prosperity.com.]( 8020Prosperity.com (collectively, the âCompanyâ or âweâ used herein) bears no responsibility or control over the content of the advertisement and/or the product or service offered. This email is a paid advertisement. It is for a product or service that is not offered, recommended or endorsed by 8020Prosperity.com and neither the company nor its affiliates bear responsibility or control over the content of the advertisement and the product or service offered. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. 8020Prosperity.com, all individuals and companies affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as advice. Information for any trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By reading, downloading or otherwise consuming this content your information may be shared with our educational partners. 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