Day Trader Stigma in Getting into Business School?

Probably depends on the school you're applying to as well....

HBS may balk at the idea, but at Chicago GSB (although it's the bastion of efficient market hypothesis), they may be more sympathetic because so many are tied into trading. Then I would couch your experience in terms that describe exploiting short-term inefficiencies for the sake of a more efficient market overall, with your competitive advantage being speed and focus (assuming that's true). Also, substitute "behaviorial finance" for anything that smacks of technical analysis, and you'll have a shot.

Just my 2 cents. Good luck, where will you apply?
 
Quote from Ace_Rothstein:

I currently trade NYSE stocks intraday - have been doing so very successfully for the last ~2.5 years after graduating from Ivy League university w/ degree in Financial Engineering. I was wondering if a B-school application from me (say, to the top 20 schools) would immediately be thrown in the circular file if they deduce the exact nature of my employment. Lots of my co-workers suggest using the job description that I run my own small hedge fund (which technically is true - I do have ~10M in buying power), but I am somewhat apprehensive about describing my trading that way.

I understand these schools would have much more respect for some joker filling customer orders at a "prestigious" I-bank than someone who generates his own trading ideas and takes real risk with his own capital, but does anyone have any stories/experiences re: going to business school coming from a prop firm. THanks,

Ace.
More...

not surprising that you're concerned about the perceptions from Academia verses the real world, where we all live in.

Hey, you want what they've got, and you're going to have to do what they want to get what they've got.

Take a course from the Aflac Duck, and watch Yogi Berra in his comments.

"When you get hurt and can't work, then it doesn't hurt to miss work"

"And, they pay you cash, which is just as good as money"

Cheers
 
Going back to school is my main goal after trading income surpasses daytime job which it should pretty soon. School for it's own sake is not a bad thing. I recall a chat with the counselor the last time I signed up for JC classes. He asked why I was going to school and I simply told him "it's better than the dollar theater".

For the resume I would not try to hide the fact that I made my dough out of the markets, I would just express it in a way that was palatable to them like "individual investor, mostly it is computerized and doesn't require my full attention" or something, not likely they are going to get down to business on what your typical holding period is. Of course I'm kind of a "play the chips where they fall" person, if some school did not like my resume I would probably not waste any further emotion, time or thought on them very much, it's a match-up you are after, after all, you should respect their opinion if you don't have a match-up.

Max
 
It's really ironic that 99% of the investment bank institutional "traders" ( and I am not talking "salestraders" here ) are completely unable to actually trade without the huge benefit of ORDER FLOW on their desk.

Also, with the option of hitting the NYSE floor with a program basket in the cash market to hedge their futures or options position, ( at a moments notice ) they have EVERY advantage in the world.

"Facilitating" trade on an institutional desk is not rocket-science, that's for sure!
 
waggie,

You're absolutely right. I'm in the middle of Liar's Poker. Lots of traders heap scorn on the institutions for their lack of skill in trading. Just a bunch of 20 year olds pushing paper. But man, with relatively little risk to make so much money, can you blame them? 5 cents a share for moving block trades they can hedge and dump. It may not be noble, but it's profitable. I can't blame them....

MYD
 
Are institutional traders still employed with all the cut backs and lay offs by the major firms? Do they have much to do these days?
 
I have seen a dozen traders come off trading desks to the up stairs screen and get smoked fast, usually the first quarter. It a different game and I am glad I did not have the privilege of working from orderflow. Learn to ride the coattail. It will show up in the volume.
 
You must log in or register to reply here.
Back
Top