Studies in Tape Reading by Richard Demille Wyckoff is a classic trading book that you won’t want to miss.
And in this book review, I’ll tell you everything you need to know about this unique book. To give you a bit of perspective before we get started, you should know this book was actually originally published in 1910. The recent edition I’m reviewing was re-published in 2011, but without any changes to the original version.
One of the reason’s I wanted to read this book is because it provides a unique historical perspective on Wall Street, and speculative trading and investing. I really enjoyed the book and am excited to tell you about it. So let’s get down to business.
Studies in Tape Reading Book Summary:
Studies in Tape Reading is a wonderful book. The author, Richard Wyckoff was himself a very successful speculator. And as he became wealthy, his attention turned to educating other aspiring traders. He was the editor of Wall Street Magazine and Stock Market Techniques. So you get the explicit sense that the author was in touch with the stock trading strategies of his day.
Studies in Tape Reading offers a very unique perspective. The book is essentially a collection of magazine columns that share tips, tactics and techniques for improving tape reading, and trading. While we obviously don’t have ticker tape machines today, the basic concepts are the same. The book is only about 175 pages and very easy to read, so it’s not too intimidating if you’re just getting started with the stock market.
Additionally, it’s incredibly insightful to read advice from 1910 that says essentially the same thing you read today: cut your losses, let your winners run, go with the trend and try your best not to be overly emotional. The book explains trading and successful speculation is a business that can be learned if only one has the right knowledge, discipline and tenacity.
And that leads me to my favourite part about this classic trading book.
The Best Part of Studies in Tape Reading:
While I enjoyed the entire book, there’s one special part of Studies in Tape Reading that I can’t help but really appreciate. And basically, it boils down to this: There have never been any short cuts on Wall Street.
It really struck me when reading this book, that even over 100 years ago, traders and speculators were constantly scheming to beat the market. They were worried about the tape being manipulated. There were tips, scams and anxiety, just like you see in today’s markets.
So I can’t hammer home this point enough: There are no secrets or short cuts in the stock market. That’s because the markets are made up of human beings, and human nature and psychology doesn’t really change. At the end of the day, we still experience fear and greed just like our ancestors did over 100 years ago.
I think this realization had a big impact on me. People have been trying to find new ways to beat the market for centuries. But at the end of the day, it comes to consistently executing a profitable strategy. And the basic tenets of going with the trend and keeping losses small are still essential to long term success.
So by now you might be wondering, is there anything I didn’t like about this book?
One Cautionary Note on Studies in Tape Reading:
Well, overall, I really enjoyed reading Studies in Tape Reading. It’s a unique book that provides a glimpse into the thinking of Wall Street speculators over 100 years ago. For this reason alone, I think the book is worth buying. But there is something you should be warned of.
Obviously, the book is a little bit dated. It pretty much only refers to traders as men. And some of the language is a little bit old-fashioned. Additionally, there are some spots where the author shows a series of transactions from the tape. Whiel thesis very interesting, I hadn’t read a ticker tape before, so this took a little bit of getting used to. That said, I enjoyed the novelty of it and wouldn’t avoid the book for these quaint little features. Make sense?
Now, with that in mind, let’s bring this book review to a close.
Studies in Tape Reading – The Final Word:
Studies in Tape Reading is a wonderful book that shows how people have been trying to make mont in markets for over 100 years. For this reason alone, I recommend that you pick up a copy of Studies in Tape Reading on Amazon and read it for yourself.
However, if you’re still looking for a little more information, then you’re encouraged to watch the video book review brow to get even more insight into this classic trading book.