These words basically tell you that a stock trading system is planned. Planned is good because it indicates that when trading using a stock trading system that you know what to do ahead of time. Every profitable stock trader has a plan. You don’t want to jump into a trade and then try to figure out your next move at the last minute.

Stock trading systems are designed to trade stocks profitably. That, of course, is the intention and not necessarily the outcome. Nobody wants to create a stock trading system that loses money.

The differences are that fundamental analysis uses economic data about supply and demand whereas technical analysis uses past price, volume, etc. data. Most of the time when someone refers to a stock trading system they are referring to a system designed using technical analysis. Stock trading systems range from very simple to very complex.

Stock trading systems have grown in popularity over the last few years. One of the reasons more and more people are trading stocks using stock trading systems has been the need to have more control over risk. After the sharp decline in stock prices starting about April 2000 we all started to realize that maybe there is more to making money in the stock market than “buy and hold”.