After starting from rock bottom and carrying the weight of massive debt, David developed an all-consuming, "burn the boats" pursuit of trading mastery that saw him sleeping in his office, living out of his car, and showering on Skid Row just to trade the 4 AM pre-market session. Today, his edge is built on rigorous fundamental deep dives, forensic research into small cap pump and dump schemes, and a strict risk management framework designed to survive predatory market algorithms.
In this conversation, David pulls back the curtain on his grueling journey from rock bottom to short selling master, detailing how he reverse-engineered the strategies of market manipulators. He breaks down the anatomy of modern short squeezes, his absolute checklist for avoidable stocks, and why protecting your capital to survive the learning curve is the ultimate rule.
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In this episode, we explore:
• Surviving rock bottom, sleeping in a WeWork desk, and showering on Skid Row during Covid
• Waking up from a coma: The life-threatening surgery that gave David the "gift of urgency"
• How the Covid biotech mania changed his account forever
• Going undercover in Colombia: Inside David’s high-stakes investigation of a cannabis pump and dump
• Why David completely avoids trading Chinese and Singaporean small-caps
• The reality of Wall Street favoritism and the mechanics behind requesting a "trade bust"
• Analyzing early $60,000 losses
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About David Capablanca:
David is an accomplished short seller, author, educator, podcast host, and founder of Friendly Bear University. Over a trading career shaped by intense study, he has built a verified seven-figure track record with a remarkable ninety percent win ratio. He has trained countless developing day traders, expanding his educational insights globally while championing an autodidact, highly disciplined framework to achieve true financial independence.
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Links + Resources:
Upcoming Conference (October 12th): https://www.friendlybearuniversity.com/conference
(Chat With Traders Team and Host Kevin Avery will be there live to co-host the forum!)
Youtube: https://www.youtube.com/@DavidCapablancaTrades
X (Twitter): https://x.com/reverselong
Instagram: https://instagram.com/reverselong
Facebook: https://facebook.com/profile.php?id=772328557
Website: https://www.friendlybearuniversity.com
Pre-Order Short Selling Master Book: https://harriman-house.com/authors/david-capablanca/short-selling-master/9781804093290
Sponsor of Chat With Traders Podcast:
Trade The Pool: http://www.tradethepool.com
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Time Stamps:
Please note: Exact times will vary depending on current ads.
00:00 The Journey From Skid Row Showers to Short Selling Master
05:53 Isolating from society to build an entrepreneurial identity
11:44 Betting on Yourself Leaving Architecture
15:41 Pattern recognition and risk management
19:57 Waking up from a coma
25:00 Selling the car, quitting alcohol, and sleeping on a shared office floor
30:43 Trading the Covid biotech bubble
35:18 Traveling to the Colombian jungle to verify a stock scam
39:25 The moment David's spy-pen cover was blown by the cartel
45:59 Why David completely bans Chinese stocks from his Trading
49:54 How predatory algorithms map locate data to trap shorts
56:45 Inside the New York Stock Exchange
01:01:46 "Trade Bust" and the reality of Wall Street favoritism
01:05:41 Reviewing early painful losses: The $60k loss
01:10:45 Insider liquidity of after-hours news
01:14:33 David's biggest winner
01:19:24 The finish line of excellence
01:21:51 Final piece of advice
01:22:17 Where to Get The Short Selling Master Book
Trading 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.
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