June 8, 2023
Trader Wizard 2023 is a comprehensive guide to trading in various financial markets. The book is a superior presentation of many aspects of trading and investment strategies to those Bill Cara introduced in his original (2008) hardcover book Lessons From the Trader Wizard. The author also delves into many of the major changes observed in financial markets that followed the 2008 banking system collapse.
This 392-page book is divided into seven parts and organized by chapters and sections:
Part 1: What is the Market? What is Trading? This part introduces financial markets and trading, helping readers understand their place in the market and whether they want to pursue trading as a full-time career. It also emphasizes the importance of developing a support system and controlling one’s trading decisions.
Part 2: The Role of Money and Economics. This part explores the concepts of money and economics about trading. It covers topics such as understanding economics and the role of the Federal Reserve (Fed), economic analysis techniques, money market funds, and trading in foreign currencies.
Part 3: Trading Bonds and Bond Funds. Here, the focus shifts to bonds and bond funds. Readers will learn about the nature of bonds, their rating, the yield curve, and the considerations when choosing between individual bonds and bond funds.
Part 4: Purchasing Mutual Funds. This part delves into mutual funds as an investment option. It presents arguments for and against mutual funds, discusses different types of mutual funds (open-end load and no-load funds), and provides guidance on selecting equity mutual funds.
Part 5: Trading Stocks (Equities). The chapters in this part cover various aspects of trading stocks in a vastly improved presentation from the 2008 book of the same name. It starts with fundamental corporate data analysis and moves on to quantitative analysis techniques, technical analysis for market timing, and an understanding of how equity markets are segmented. It also explores specific stock markets such as US-headquartered stocks, Dow 30, S&P 500, and stocks from countries outside the USA.
The remaining chapters (Parts 6 and 7) explore specific topics related to trading different types of securities, such as exchange-traded equity funds, preferred shares, warrants, stock splits, options, commodities, futures contracts, and more. These chapters offer guidance, strategies, and insights for trading and investing in each area.
The book aims to provide readers with a comprehensive understanding of financial markets, various investment instruments, and different trading strategies to make informed decisions in their trading and investment activities.
A follow-up book, Trader Wizard’s Investment Club, is being written specifically for novices, students, and retirees interested in becoming investors but must start from a beginner’s platform not offered by Trader Wizard 2023.