The problem is you're calling reader.readLine()
three different times, so you'll end up comparing two completely different strings and then recording yet another one.
Also, it's generally frowned upon to compare strings using == (as comparing Objects with == asks if they are the same actual object (yes, Java's forgiving in that regard with strings, but it's still frowned upon)).
You'll need to do something more akin to:
public static String readFromStandardIO() {
String returnValue = "";
System.out.println("Reading Strings from console");
// You use System.in to get the Strings entered in console by user
try {
// You need to create BufferedReader which has System.in to get user
// input
BufferedReader reader = new BufferedReader(new InputStreamReader(System.in));
String userInput;
System.out.println("Enter text...\n");
while (true) {
userInput = reader.readLine();
System.out.println("Finally got in here");
System.out.println(userInput);
returnValue += userInput;
if (!userInput.equals(userInput.trim())) {
break;
}
}
System.out.println("You entered : " + returnValue);
} catch (Exception e) {
}
return returnValue;
}