I like to trade stocks in my spare time but started rather recently, so I'm using papermoney via thinkorswim right now, and familiarizing myself first. Basically, I wake up before the market opens, research the news, place my trades at the opening bell, and then go to class. After class, I check my positions and change them if neccessary.
I do this mostly to familiarize and commit myself in the financial markets moreso than just reading WSJ. If I were at a trading interview, is this worth bringing up? Because of I'm not using real money and thinkorswim with papermoney has a 20-min delay in market data, it might end up making me a laughingstock instead.
I would say don't bring it up. I think the potential for time-arbitrage given the delay between Thinkorswim and whatever finance website you can get near-real time quotes from will cost you some credibility. If I knew 20 mins ahead of real time which way the market was going, I would be like Bradley Cooper in Limitless.
Yeah that's what I was thinking too. But before using thinkorswim, I was playing virtual exchange games on the marketwatch website (Still do that too). Besides the issue of delayed data, would the whole trading with not-real money detail make a fool out of me?
Dude - you are a student. It depends on who it is. But if its a sales/trading desk or a hedge fund or someone asks you to demonstrate why you like markets, then ABSOLUTELY bring it up. No doubt about that. Heck I would think that with most people to bring it up. No one expects you to know anything. Like at all. No one expects you to have money. Like at all. It shows, interest, action, passion etc. In fact, have the routine down.
Be like "well I trade paper since I don't have much money, but want to be in the market/learn about it. So what I do is wake up before market open, see the news, look into it, place trades at/before the bell, go to class, check positions at break, r-evaluate etc." Have some trades you have one now ready to talk about. Also one that went well and one that went against you and what you did.
Who cares if people laugh at you. Screw them. You want a job. More people want jobs than that get them. You (like anyone else) need an edge. This is it. You could hope to build a rapport over a short period of time in an interview (unlikely), or roll the dice and be one of 50 un-memorable kids (chances not great), network the hell out of it to get a foot in the door (the best thing, but time consuming and full of luck - definitely do this) and/or you can try to stand out in a way and tell people the story. That may make you stand out. That's what will get your further interviews/jobs.
Like I said, it demonstrates that you are involved, want to learn, are taking action, are hungry. That says a lot. Keep paper trading, learning etc, and if you have some money start putting it to work (that's asking a lot).
Good Luck
No. Don't even mention how you paper trade unless they ask you for it. Most won't. And if they do, then mention it and the positives and negatives and that you've done some research and this is the best thing you could find. Do they have any ideas? Especially for those who laugh/reject you, ask them for their advice. What would they do? Some will be super lame and unrealistic and tell you to get money from your parents and trade on that. Others will be like "oh I don't know" - yes there are lame people like that that got into the business during the bull market, had a few nice years and have hung on and don't get how tough it is now and have forgotten how its not easy to be a college student/grad looking to get in.
The other way to spin it is to be competitive. "I know its not real" but I always want to do better/not to lose etc. So even though its "a game" I'm always trying to up my best or in tough times, minimise the worst (ie. keep winners running and cutting losers etc).
It might not work but its a heck of a shot to take and much better than that of most. Don't doubt yourself. It is OK to be humble and admit you don't know anything (some of the best in the business admit that, most don't). Remember you are in college...
Good Luck
I will say I have mentioned trading stocks in my spare time before at interviews and people haven't asked me whether it's papermoney, so they might think I'm using real money. So yeah I won't mention it specifically unless they ask me. More likely, they'd ask me about a general market trend or event, and I could definitely talk about that.
I think this is a good way to go about it. I'm not making a personal attack or anything saying that you actually do take advantage of the time difference but if I were interviewing someone and they revealed they were trading with essentially a 20 minute head start, I would take whatever you said your returns were with a huge grain of salt. That being said, I would take anyone's "returns" with a grain of salt unless they showed me something that proved their returns were legit. I would definitely take advantage of your knowledge of current events/market trends though. Use that to your advantage.
Whatever you do, don't flat out lie to them about trading real vs. paper money. Lying is never a good idea in an interview (or ever, really).
Could be a great part of your 'story' - ignore the advice about someone laughing at you because of time delay arbitrage, I highly doubt you're doing this (is anyone, using paper money?!) and people will know that has nothing to do with the point of why you're doing it. Definitely mention it, at least as part of an explanation of why you're interested in trading - if that's where your interests lie. If you're into ib it won't matter and people won't really care either way, and in that scenario I may refrain from mentioning it because it's pretty irrelevant
I think that for IB you could mention it to demonstrate interest in finance and a way to follow the market, but maybe not be too excited or detailed about it, whereas for trading/sales/hf etc be enthusiastic about it and talk about it. People love the passion and the action taken dude.It's pretty rare.
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