Short seller David Capablanca is a successful trader. David Capablanca
This is a machine translation of an article by our US colleagues at Insider. It was automatically translated and checked by a real editor. We welcome feedback at the end of the article.
When a trader looks at a chart, they see the same lines and bars as any other trader. These signals are data points that indicate stock price and trading volume, among other things, to name a few.
However, it would be a mistake to assume that everyone who looks at charts interprets the data in a similar way.
Traders with long positions try to read signals that could help them profit from a rising stock price or cut their losses. On the other hand, David Capablanca tries to profit from falling stock prices by going short. In other words, he borrows a share and sells it with the intention of later buying it back at a lower price and collecting the difference.
His current win rate is 94.91 percent
While using many of the same indicators as long traders, he is looking for signals that might indicate a reversal to the downside. However, the chart is not his only point of reference. He has a checklist of variables to look at before deciding to sell a stock. These include sudden price increases of over 40 percent, positive news, small-cap stocks with low free float, low borrowing fees, low institutional ownership, and short-term dilution. If most of these variables agree, he uses the indicators on a chart to see if his thesis is true.