Stock Market Technique Number Two | By Richard D. Wyckoff

BOOK REVIEW

By Cam R

  

Title: Stock Market Technique Number Two

Author: Richard D. Wyckoff

Stock Market Technique Number Two is essentially the sequel to the first book, with both being compilations of a series of articles that Richard Wyckoff wrote for his magazine on Wall Street. Having read and thoroughly enjoyed the first book, I am hoping that this sequel will live up to the high expectations set up by the first one. Does it deliver? Read on below.

Packaging - 3/5

In the same format and size as the first book with the same quality of paper. Unfortunately, it also suffers from the same problem of the font being small, but I suppose it keeps the consistency between both books. One thing I do like about the book is its cover art. The pencil drawing does a nice job in adding to the old-world charm of the book. But it just struck me that the title is a little misleading through, there is really not much about the technique per se. Perhaps it would be better to call it Stock Market Stories or something along that line.

Writing Style - 3/5

The no-nonsense and dry wit style of Wyckoff’s writing is present here, so no issues on this end.

Trading Methods (Specifics) - 3/5

Similar to the first book, the Stock Market Technique books are mostly Wyckoff penning his thoughts and viewpoints on trading in general, so no specific trading methods here. However, there is a new collection of one-liners (referred to as flashes by him) here and they are equally insightful in this book too.

Some of my favourites are:

-         Only those who fail to realize the risks will risk their resources in stock speculation without first learning how.

-         To treat the stock market as one does betting on the races is to overlook one of the greatest opportunities for legitimate money making.

-         Reading all the financial news and evaluating it will avail you nothing. The market may rise on bad news and go down on good news. Then where are you?

-         Anyone can be lucky now and then, or even half the time, but persistent success is certain proof of ability. Persistent losses in the stock market are the evidence of poor judgement, bad technique, or both.

Trading Management (Soft Skills) - 3/5

There are two particularly interesting articles here. One is titled “Take a tip from the flea”, and he describes how a trader should learn from the flea in knowing when to trade. The other is called “A small trader should be a hitch-hiker”, where Wyckoff make a compelling argument for a trader to be similar to how a hitch-hiker operates. The articles are quite descriptive and he has a wonderful ability to draw similarities between trading stuff and general non-trading matters.

Here is a small except from “A small trader should be a hitch-hiker”.

“Figuratively speaking, the small trader should imagine himself as a hitch-hiker in the market. For the ordinary hitch-hiker someone else supplies the car, chauffeur, oil and gas. When he thinks the car is about to go in his direction, he jumps aboard and rides as far as he thinks the car will go. When he notices the machine has been stopped by a red light, or is about to turn a corner and go in the opposite direction, or that the car is running out of gas, or the brakes failing to work properly, he steps off and figures he has secured about as long a ride as he may expect. All he has supplied in this transaction is a modest commission and whatever brains are necessary to observe and recognize when to get on and off.”

He explains further on the pros and cons of being a small trader, but mostly it's in a positive way. Good stuff!

Trading Psychology (Mindset) - 2/5

Lean on trading psychology, but I did like a line which I felt was very instructive.

“We must look upon things as they are, and not as we would wish them to be.”

Longevity - 3/5

Comparable to the first book, which I feel would be a nice addition to any collection. I did find the first book slightly richer in content though. But both books are good for a light-hearted read at times.

Value - 4/5

A couple of the articles are refreshing and provide an alternative perspective on some stock market aspects. Definitely worth a read at least.

Things to Watch Out For -

This is probably not a book for anyone new to trading, or someone who wants an introduction to trading. There is more enjoyment to be gotten out of the book to anyone with some trading experience I believe.

Overall - 3/5

A delightful little book. If you enjoyed the first book, definitely get your hands on this one too. I highly enjoyed reading it, and hope there would be a book number three.

Score Recap:

Packaging - 3/5

Writing Style - 3/5

Trading Methods (Specifics) - 3/5

Trading Management (Soft Skills) - 3/5

Trading Psychology (Mindset) - 2/5

Longevity -3/5

Value - 4/5

Overall - 3/5

Where to Buy:

If you found the above review helpful and want to buy the book, please consider buying it through my Amazon affiliate link below. I would genuinely appreciate it, and any purchase really goes a long way in supporting this site. Thank you!

Related Books
If you have not yet read the first book Stock Market Technique Number One, I highly recommend reading it. Check my review for it for more information. (Review Here)

Wyckoff also authored a very good book on the art of reading the tape, called Studies in Tape Reading. It's a good educational resource on reading the tape, so if you need more information, just check out my review. (Review Here)


Thanks a million for reading!

And do check back often for new or updated reviews, cheers! :)