EP 257 | Crafting the Art of Shorting Scams | David Capablanca

Deep in debt after finishing Architecture school, David Capablanca, originally from Miami and host of the Friendly Bear Podcast, desired an alternative career with independence, freedom and potential for high earnings. Naturally drawn to a contrarian psychology, he zeroed in on short selling. The challenge of uncovering scams through a deep dive into company fundamentals, history of founders and visiting company headquarters overseas on a quest to find clues were the things that energized David and brought his trading approach to a whole other level.

Let’s go on a “short” adventure with David today!

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Topics & Timestamps:

Please note: Exact times will vary depending on current ads.

0:00 Background
5:30 What attracted David to Short selling
7:45 Focusing on frauds
9:55 Why he focuses on the OTC market
11:11 Institutional ownership influences his decision to short
12:48 Early challenges trading the markets
15:48 Groups which write short reports
17:42 Investigation of Marijuana company reveals fraud
23:00 How to find the scams to short
25:10 Shorting the scam after his visit to the overseas company
26:55 How difficult is it to find shares to short?
28:55 Fees associated in shorting a stock
33:10 How often can he find scams?
34:10 Shorting the Meme stocks and sympathy plays
37:07 Staying away from highly shorted stocks
40:10 Mechanics of a short squeeze
42:48 Story of HKD spectacular rise and collapse
47:40 How to track short interest on a daily basis
51:20 Forced buy-ins
53:30 What David looks for in the charts when shorting
56:55 What David struggles with the most
58:20 Goals
59:45 How to get in touch with David

See more show notes here:
https://chatwithtraders.com/257

Links & Resources:
- @reverse_long [Twitter]
- The Friendly Bear Podcast [YouTube]

* NEED ACCOUNTABILITY IN YOUR TRADING JOURNEY? LEARN ABOUT THE TRADERS ACCOUNTABILITY PROGRAM BROUGHT TO YOU BY THE CWT COMMUNITY: https://community.chatwithtraders.com/

DISCLAIMER:
Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.

#stocktrading #shortselling #daytrading