Short seller with 90% win ratio shares 9 indicators he uses for stocks

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A short seller with an over 90% win ratio shares the 9 indicators that make for a 'beautiful stock to short'

Once a stock rallies, he looks for 9 data points that indicate it is about to plunge. David Capablanca dreamed of becoming an architect and building structures that would last long after he was gone.

"The doctor gave me 50 years of life," Capablanca told Insider."I need to make those 50 years count. I can't waste those years being in debt all the time. The whole life of bad credit had to stop, and debt and stress. I was calling my parents when I was 30 years old for help to pay my rent — that had to stop."

He continued to practice with small amounts until 2020 when the stock market became volatile. He witnessed companies, such as biotech and pharmaceutical firms, that lacked fundamentals rally by hundreds of percentages. Using multiple accounts allows him to limit risk trading one stock at a time in an account. This way, he isn't tempted to put on a larger cash position on any given trade. Additionally, he can shop around for the best locate fee, or a flat per-share fee to borrow shares to short sell.

On February 23, Genprex , a gene therapy company, showed up on his scanner after it went from $1.80 to $2.11 in four minutes during pre-market trading. He previously shorted the stock because he had received paid, promotional emails about the company and believed it was being hyped. He shorted the stock again, this time at $1.91, and covered his position at about $1.87 for a profit of $1,811, according to his Success Trader brokerage statement and TraderSync.

 

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