We should treat trading like running a business. We need to have a battle plan and execute it accordingly. Fund managers and professional traders develop and follow a trading system much like any CEO  that carries around a prospectus or business plan and implements it for his company. It is the trading system that keeps ZIG Traders' business stable, easy to manage, and  above all, profitable.

Just imagine trading stocks without utilizing any system - having no set of rules, no risk controls, and no conditional  parameters to observe. Wouldn't it be chaotic? Much like being engaged in any manufacturing business, the lack of good raw materials (stock picks), absence of functional and reliable assembly lines (execution of a trading plan), and strict quality control measures (market feel and trading discipline), are good enough reasons for business failure.

To further expound on this subject, let me enumerate some key pointers on what components trading systems should have:

1. Technical Analysis - to be used as a basis for picking out stocks, and setting entry and exit timings.
2. Trading Tactics - used to determine the trading style and behavior, to develop discipline, to mechanically execute trades and to manage trading emotions.
3. Market Feel - to be present in the market during trading hours in order to execute trades properly. (being in the "zone")

These 3 components should be exercised and mastered to develop the necessary trading skills required to prosper in the stock market. The lack of any of the 3 spells: LOSSES!

To surmise, trading with a system means business and trading without a system means gambling.