application troubles

[powerlunch]

I've been visiting this forum for some time and I want to jump in and ask my own question about my application strategy.

I want to know how adcoms at top b-schools view day traders. I started trading stocks in college as a hobby, then 2 years ago I quit my "real" job and have made my living ever since by day trading, mostly options. I wouldn't dream of doing trading as a job for someone else, because I keep the money I make, plus my freedom on top of that.

Unfortunately this course of action hasn't left me with all the building blocks for an application. I am technically unemployed and have been for the past 2 years. What's the best way to spin this in my essays? How do I establish my credibility? Unless the school audits my bank and brokerage accounts, I could just be making up numbers. How should this look on my resume?

As far as recommendations go, my recent "career" consists of thousands of hours staring at a computer screen: no bosses, coworkers, no clients. I could ask my old boss, who would be ok but can't speak at all about what I consider my biggest accomplishment, which is being successful at trading. My "mentors" have been books and the internet. The only people who really "know me well" and are aware of my work for the past two years are my girlfriend, my parents, and my friends. So finding 3 professional recommendations is a challenge. I volunteer for some organizations, but I don't have leadership positions with them. What is the best way to approach the recommendations?

Besides the work experience/recommendations problem, I'm pretty much in the ballpark for the top b-schools as far as GMAT, GPA, etc. I was a finance major at a decent-sized state university, but it's just an average school. My reasons for wanting to get an MBA are not because I want a "real" job with a "high" salary as an employee. I want to broaden my horizons as an investor (including the kind that requires interacting with people) and I want to know the b-school view on how to run/manage a company because although I don't want to be an employee, I also don't want to JUST sit in front of a computer for the next 40 years. On top of that, I love being a student, I can maintain my trading while I'm in school, and I want to build a network while there. Are those good enough reasons?

[Lisa Anderson]

Dear powerlunch,

Your reasons some rational to me, but how your applications fare will depend on how you present them, as well as your background, in your application package. I agree you should be concerned as there will be some who will view your last 2 years as unemployment rather than self-employment. Nevertheless, there are schools that will see your day trading as your job and recognize the skill necessary to make a living from it. Consequently, it is critical you identify a broad mix of schools to apply to--not just the top programs--if you want to be in business school. It is possible you will get into a top program if you have an above average profile and an outstanding application package, but there are no guarantees.

As for recommenders, I do think you need to ask a former supervisor. For the other 1 or 2 (depending on the school), perhaps there is a former colleague who you have kept up with as a friend that can speak to your success as a day trader? Or someone in an organization you volunteer with who acts as a supervisor to you and/or knows you well?

With regard to your current job, I think you say you are a self-employed trader. You note your accomplishments as such on your resume. No, the schools cannot call up someone to verify "employment," but they can't do that with many self-employed applicants. That is why you usually sign an honor code pledge and/or statement of authenticity or accuracy. If you have the resources, it might be helpful to work with a consultant on presenting your background. A consultant could help with your resume, essays and strategy.

Good luck,
Lisa

[powerlunch]

Thanks Lisa,

Your advice does sound like the best way for me to go. But I still think the way the applications are designed goes beyond just screening for good candidates. Candidates who don't happen to fit into the established mold are definitely put at a disadvantage, despite everything they say about looking for uniqueness.