Verified Millionaire Trader shares His 90% Win Rate Strategy

Can you tell us a little bit more about the time when Business Insider kind of interviewed you and verified your past trades and yeah Business Insider is the real deal you know so they Grill you for like a week straight and they go through all your Brokers they want to call them up they have a mathematician and like a auditor look at it and calculate it and they and then they they say hey if if this is off we're going to take a legal Action against you they kind of like you know scare you a

bit like go you know but like I'm like it's real man go for it you know so couldn't I was like I was like you know what I'll I'll go think about it like me showing up in the Mountaintop in columia like how did this guy get here how did they he find address coordinates and they have no this is part of the short report there's no infrastructure and then they all look at this is like a Clint Eastwood movie They all look at each other and they're like there was a a moment of silence

and then I'm like uhoh so like they're thinking we could just make this guy disappear no way I the soldiers or whatever cuz they had like camouflage I don't know what they they're not normal security they're not normal secur not normal security they like what do we do now this guy is obviously not an investor he has cameras I just like I wanted to be involved in the Deep dive And like take down these people you know these these bad these evil you know like the research aspect like you like the digging yeah the digging

and like I'm like like James Bond you know what I mean like you like that kind of stuff like you know short time period trade like a scalp or whatever it is coming in with with a form of a a a bigger play a bigger thesis however I'm taking my profits I'm just locking in profits right I see my profits as like a bucket And I'm just putting green money in the bucket and then like you know shoving money in there is it actually possible to have a 90% win rate as a retail Trader meets

David capablanca a Living Testament of hard work pays off in the world of trading this Trader was an architecture student at University when he discovered Trading his mentality was very different from most people who got into trading in the first place instead of dreaming about becoming the next wolf Of W Street this Trader was highly critical about a trading strategy and he wanted to fully dissect it to make sure that he can actually make trading work David sees himself as a music composer who puts pieces of fundamental research and Technical information together to make the

right decision on all his traits he plays way more emphasis on time spent in analysis and trade planning more than the actual time placed in executing a trade his 90% win Rate which was verified by Business Insider reflects his high level of attention to detail in terms of trading today David is here to share his full trading research process using Advanced fundamental analysis techniques how to avoid trading the wrong stocks and black swung events his experience working with hedge funds to research fraudulent companies and paid pump and dumps how he got a 90% win rate

verified by Business Insider I can't wait to share with you This conversation with David today hit the like button down below and now let's get [Music] started this episode of The Humble Traders podcast is made possible by stocks. my proprietary scanner the feedback from users have been amazing so far I spent the last 6 months working on the scanner to make sure it can provide you fast and live market data even during pre-market hours easy to use Interface on any browser and devices and affordable pricing today is the last day to get 40% off on

stocks iio and as a last chance special bonus for you you'll also receive one month free of humble Traders options course as well as one month free of spiky the back testing tool I use the bonuses together are worth over $780 and available for today only with this very special promotion the scanner would only be $42 per month compared to all other premium scanners Out there charging you anywhere from 120 to 190 per month the promo is expiring tonight so make sure to lock in this very exclusive pricing and all the bonuses by the end

of today now back to the podcast I have to say I think you are probably our first guest who is really heavily leaning into the fundamental research side um so I'm Prett excited for today's episode I understand you are predominantly a short seller um but take our audience through Kind of like your process how you got into trading in the first place and especially short research all right so yeah so how do I get started so it's 2015 I'm in my last year of Graduate School uh a UCLA architecture graduate school and um someone introduces

to me um some crazy video of some guy in the lambo and uh okay and actually it was a student of mine I was a teaching assistant and someone mentioned it to me And and he was laughing and and like look at this ridiculous look at this on YouTube and I think YouTube back then yeah yeah it was just YouTube and um ended up being Tim syes by the way so then oh okay but but little did the people know like he was laughing at it but like I went home and I looked up to

my apartment and I googled it I went into more detail and because it it it intrigued me um not the lambo but the what he was saying that Tim syes was Saying about the pumping dumps so the pumping dumps made sense to me and I was like you know let me uh let let me try this like it just intrigued me so that's how I started but I didn't fund the account till like like uh 6 months later and my first account I actually I was so financially literate I actually wired in $25 to an

an they don't even exist anymore it's called options house you ever heard of them uh then one of the Nigerian twins owned it and I think E Trade bought it okay but it was options so I wired in 25 bucks I think the wire fee was more than the 25 bucks I was completely broke at the time I was still in school I didn't know what I was doing and I I was and so like I wired in 25 bucks I think I paid like I probably paid like 30 to 50 bucks for the wire

the fees and then I bought one share of Siri Siri I've never said yeah and I still have it I still have that one share I haven't sold it I'm Like you know this is like my trophy over here my first stock but after that like I looked at all the the free stuff that Tim has online at the time it was all paid pumping dumb stuff uh short selling all short selling at the time you know he's he's not going to go too deep into it these days he says shorts are evil and all

this stuff but Tim's my guy you know but like you know that he BR he con created this short seller right here he introduced you to the dark Side of trading yeah absolutely so uh it just made perfect sense to me at the time coming in with the architecture graduate school mindset of uh just research analyzing and you know it just made a lot of sense to me the lambo I did not care about I did not care about the flash I just was like focused on like solving this puzzle and getting paid for it

was cool so um that's all I focused on you know out of you know the market is like there's a lot of things To trade but I was like I did not get a distra I just focused only on paid pumps so I did what what um what what I was told to do uh sign up for all the paid pump newsletters and just wait for them to go into my email or my text and then like look to short them and I was as I was uh putting very small positions and shorting them later

on later on I funded my account with like $1,000 I put like you know 10 shares 50 shares and like I would wait for the trade to play out you Know uh these by the way back then the squeezes were a lot less yeah you know this is a yeah so I I went like two or three years uh doing this and like I would just learn on the side I would just study on the side and I wasn't really making any money but I wasn't losing money and then like I would just uh continue

learning those like all these webinars and video lessons and all this and then eventually you go down the rabbit hole you go down you see like Other people that that are talking about stuff on social media and you dig down the rabbit hole you go just just read and you know you know how that works and then and then finally 2020 came and uh the market was crazy and I was prepared and I decided to uh funded my account over PDT and uh yeah you know so 2020 made about like 100 Grand and then 2021

made a little bit more and 2022 till now it's it's gone exponential but um with 2021 I also traded out of an Office in Puerto Rico okay and uh I networked and met a lot of big Traders there and they taught me fundamentals there's one so yeah so that's where I got the opportunity to work with a a short report firm and uh we deep dived into and this always intrigued Me So like um when I was studying the paid pumps with Tim and all that all the material I used to wonder man it would

be so cool to go and like work at research firm and like you know I saw Like Hindenburg and this and that I like man it would be so cool to work there as just an analyst that's what that was my mind was I just like I wanted to be involved in the Deep dive and like take down these people you know these these bad these evil you know like the research aspect like you like the digging yeah the digging and like I'm like like James Bond you know what I mean like like that kind

of stuff and um when I was in Puerto Rico like it all uh Came full circle so I I got ex you know Puerto Rico is a place um where there's there's a lot of Traders there's a Trader trading Hub um a lot of you know people go there for the the tax incentives yeah and it's a it's you have to be there 180 days 181 days out of the year on the island so like the people are very friendly and open these are very successful people very profitable people very successful yes and um they're

just open to making friends and Like if you if you're a person that wants to add value and like like you know and like you come in with with sincere and like people are just really receptive to that so I was able to make a lot of friends there and uh in trading in the trading world and you know they would uh anytime I had a question they would answer it you know and I would provide value I would always like in the in the trading office for example I would be the first one there

every day For a year and people know that and and whoever's watching this you know I was there at 3:00 in the morning every day and I nine times out of 10 I mean I'm a human being not every single day but like nine times out of 10 there I was there 3:00 a.m. in the morning and I didn't leave until after hours the trading day I would go to the grocery store and like get some protein bars or whatever and then get back to to trading and um I Would always provide a watch list

in the morning the best I could at the time with the knowledge I had and I'll always try to give like value of the paid pumps I was really good with the paid pumps I would always show uh the trader are next to me like hey look this is the paid P I just got this text I just got this email watch out for this one this one's in this sector this one this is the top gainers this is the breakdown this is they need cash this is has dilution this Is this and then um

and then like when I had a a question that was like an intricate question they would they would break it down for me that's how I learned um you do that for a a year I did it for a year um and I learned a lot and then like when I moved back to Los Angeles um I was able to you know those relationships that I had I have them on contact every day and I'm able like to further my learning and then I'm growing and I'm giving I'm adding more value and Like it's just

exponential growth from there so like my most of my fundamental knowledge came from from there oh so your first introduction to Short Selling was through the pay pumps at that point I guess Beyond just signing up the text you are kind of just shorting the the stocks that you see popping up from those texts right and then you met the short research firm and that's where they taught you the fundamentals yeah yes fundamentals are very it's it's a Lot you know it's just a it's just a lot you know so like um but yeah the

paid pumps is it's just like they don't you got to be patient with them so like I was we were talking before the the the show started um I have like one of my monitors on a portion of one of my a paid pump list always there at all times and anytime I get a text and it's nobody ever text me only Pumpers you know it's it's crazy it's like it's like but they text a lot it's like two or three times A day sign W that aggressive oh well at the same time like uh

I've been following these guys for many years so like I when they make a new website like I I I already know about it like I'm the first one to find out the first who sign out yeah the first one so like um you know so I signed up for email I have a burner email text I like people are like very uh private about their phone number I don't care they can have it they can have the phone number so like okay but Uh yeah I I I just made a dedicated list for them

and I'll every time they have a text I'll just throw the Ticker on there and then like you got you know I don't expect it to go crazy you know so like when I was learning the paid pumps in 2016 17 or even before 2015 late 15 with the free material online um they would go a lot crazier I think Tim grani uh he made he used to buy the awesome penny stock picks or something like that those would go crazy he made Like a small fortune on that back in the day Tim the same

thing all those guys um but like I don't expect them to do that but once in a blue moon you might get one you know but at the same time these do pop up somewhat 20 30% 40% one day randomly and then you just got to be prepared for cuz like it's all about being quick cuz these things done fast so if I if I if I look at my list and I see one is up 50 60% like in the pre-market or something like I'm like if It's on that list it's like that's like

the black list I'm just going to hit it I already I already did all the research on it and and when I pull up the chart all my notes are on the chart so I do my work beforehand so the notes it tells me if it's if the float I don't want to short something that's like super small float okay would you uh consider as too small of a float under under 2 million is very very super cautious and under 1 million is no trade at all absolutely no Trade okay good to know and uh

in terms of volume what do you look at let's say premarket how much volume you want to see in terms of the stocks that you already kind of selected on your pump list yeah yeah so well on the pump list it doesn't really matter as long as it's not because none of them really go crazy like none of them I haven't seen any in any recent times go like 1,000% I think one actually last year bnx that one went up surprisingly that one went up like 600% that was a super rare one okay but like

the volume on that when it starts to rotate its float the volume like like I don't know five 10 times in the pre-market that's pretty concerning that means like something is is up with this like some news Catalyst or something uh in the overall markets or something else something crazy going on so okay I'll just stay away in general the short if they have a lot of volume like that if they're rotating their float um I'm Probably not going to stay away especially okay unless it's OV exhausted its float like like this past week there

was a stock I already I already forgot the ticker but it was a 1 million float stock that rotated his float like 20 30 times by like the morning so once it rotates the float that much that's not sustainable and then it has no Catalyst or or anything so it's like then I'm looking for a backside you know I'm that's that's what I'm I'm looking for I'm looking you know like pattern recognition for like when is time to Backside the best we could but um when something's trading too much volume is concerning you know hey

guys I just wanted really quickly some of David's trade planning routine and how he Narrows down the stocks to trade as well as the stocks to avoid number one he selects stocks from his pump and dump list that gapping up with high percentage on the day usually pre-market And number two he's looking for high volume pre-market as well but very importantly he actively avoids trading those kind of stocks like can lose him money the first red flag is stocks would float under 1 million so that would be called micr flats and number two even though

earlier we talked about he looks for stocks with decent volume he actively avoids the kind of stocks with a pre-market volume that's already rotated the float five times this is What we know as float rotation and it's a huge red flag for Traders to know the float rotation you need to know the premarket volume as well as the actual float now unless the float has rotated over 20 times then David will start looking for a volume exhaustion after the open to short the backside every Trader should use a tool that will allow you to quickly

look through all the criteria he mentioned for me I can easily do that every single morning on Stocks iio and it's an essential part of my pre-market trade planning process so you have your different methods of finding out these stocks are potentially pump and dumps and you still kind of apply the technical knowledge of looking at volume float and you still observe chart pattern to some extent before you decide whether you actually want to short sell it or not cuz you it seems like you don't short sell everything that's that's on list yeah yeah actually

Um I I go in with so like you know with with trading I think it's important you know uh whatever you're successful at or had somewhat some success or you enjoyed or your strengths from your previous career or whatever you did before trading I think you you should utilize that um so for me was architecture so I did architecture uh four years undergrad and then 5 years graduate school U oh wow not years yeah so graduate school took a Little longer cuz I had a a a brain operation that's a whole another story okay um

I'm glad you're now yeah I'm that was 2010 so like yeah so it's like um it was for a brain tumor a benign so like I survived I'm doing pretty well so like uh anyways I'm healthy but um yeah but uh I didn't n years of architecture so I have a lot of Knowledge from that career and I loved the architecture just didn't pay well oh and also the the student loans it was a lot of yeah Especially when you went to Masters yeah yeah I don't know how you guys have in Canada student loans

and stuff but the US is crazy so like different states have different but anyway that's a whole another thing but it was a lot of student loans so but anyways architecture I have a one Professor that I had Professor Alonso Perez I'm actually going to see him later this year I'm they invited me to the University of Florida anyway he used to Describe architecture like a like a composer of a symphony Architects are composer of a symphony get all these instruments in a symphony the trumpet the trombone the the violin the saxophone the vocals and

it the composer knows the Sounds in his head and writes it out and then it comes together at the showtime or when they practice it whatever okay so our so I see that like with trading so my trading I see myself as like the composer of a symphony so I'm getting the technicals the fundamentals the the volume the sentiment the social the social media sentiment what are people saying what's uh you know are there you know even like little things like uh the buyings are some Brokers buying it in or is what's the borrow fee

rate you know is it is it are they do you know like all the what's the float of the stock What's um the short interest overall when was the last time they reported short interest like All these things what's the news who's the who's the underwriter you know what when did it IPO what's the you know what I mean it's like did they have a lockup did when did they do a pipe offering when did they do what's their history of offerings do they have a bunch of toxic offerings does this company always need cash

I put all these things together and in a you know now over a lot of practice it takes a few minutes to come to come up with a solid thesis of where I want To go with it and then I'll trade it so yeah a technicals I I I consider everything just like Architects they consider they got to know a little bit about everything they got to know a little bit about uh Structural Engineering a little bit about physics a little about math a little bit about this it's like it's just and then also about

art and culture and this just all comes together and um so yeah I consider all those things That's a really beautiful way to to describe trading you're composing a symphony like I don't think any Trader has said describe Trading so poetically everyone's like oh trading is hard it's it is hard it's hard it's like you're going to lose sleep over it you're going to be stressed no one said like composing a symphony that was that's really nice well up now you put like I don't know like I told Tim Tim syes we did a an

interview with him he came to LA and we I always love to meet Tim he's a he's a cool guy big personality big personality yes so then um he said he we did a little uh thing for for Instagram or something he's like David how long did it take you to get profitable how much time have you put into trading I said uh I don't know 50,000 to 100,000 hours and and I said it with a serious face that's what I thought then I I I did the math I was like I don't think that

I think it's like 5,000 hours in a Year or something like that so but I think like the I think the general R I think that was too much I I went overboard with the 100,000 it's not 100,000 but that's okay I do think like that there's like a book or someone that says the 10,000 hour rule I think once you pass 10,000 hour it gets it gets you you know I wasn't a I didn't see it as a composer early on it's just so hard and it's like so Rocky and you're having setbacks here

and there and you're just Staying you're just trying to survive for like a couple years you're just trying to survive but then after a while you know you come up with your rules and you get into like a rhythm you have a process you just do the same thing every morning yeah yeah yeah then then then you can so now like when I go into my office in in the morning at the US Bank Tower in La like it's like like I I feel good in the morning I'm going up the elevator I'm with gratitude

like How far I've come and like I go to my screens I know exactly what I'm looking for I did a trade review the day before I do trade reviews every day um and then by the time I get to my screen I know what's already there because I reviewed in the after hours I kind of reviewed in pre-market I have all the scanners on my phone so like as soon as I get up in the morning I see the top gainers I already know a lot of these stocks you kind of see they they

been around so like I Already oh I traded that one recently oh that's that one that one's a trash company pump and dump I already know them because I've reviewed them and seen them so many times so it's like I already know what to expect for the most part and I know what I'm not going to trade so basically like you said I don't short everything so like there's a list of like so I did um Business Insider reached out to me last year and they the journalists are really good at like con Like making

everything really concise okay so I spoke to this journalist for like I don't know must have been a week like a couple hours a day like they were trying to figure out like I was saying I was talking about all this stuff like I was um I'm not going to say it was unorganized but it was a lot of words and like a lot of explanation I was explaining explaining so but the journalist was able to like dumb it down to all that conversation those Conversations into like nine points of what I don't trade or

like what I avoid okay so it was a great so I I I'm open to trading everything as long as it's not in that list I see do you remember uh well of course you remember what's on the on N points I haven't seen the article yet I'll have to check it out yeah it's a great article by the way it's out there you know a lot of a lot of stuff with trading is out there but like people don't they don't you know They just not digging far enough but anyway no Nano floats no

floats I describe Nano floats so like for example the people that like I'm in communication with on a daily basis we have a a pure understanding because people say some I've heard some people they confuse what nanof flat is nanof flat for me is anything under 1 million boom a clear communication so like no nanof floats no under one million no trade okay no trade and these days we Have dilution tracker which calculates the the floats they double check you can even ask them to recalculated um after every late the latest filing so we have

the tools to give us a the the most accurate float when I was starting out um floats was all over the place it was like a mysterious thing it was like a fugazi you know like every source is still kind of different yeah yeah so um uh but yeah then no high institutional ownership if it's if it's Uh anything over 40% is a is a like a like a caution for me 70% is no trade but but yeah okay um and like with my podcast like uh I've interview I've had the chance to interview all

the people I wanted interview I reached out to all of them and because I had questions early on um and I reached out to a few different people and they broke it down to me that these high institutional ownerships they have ALG basically what it dumbs down to is that they have Algorithms they have uh that are just you don't want to compete against that one of my one of my um philosophies of trading too is it's like a chess game it's like you want to know your competition so it's like who are you trading

against so um with the institutional ownership you're treating against likely some other bigger force and I don't want anything to do with it okay fair yeah so no high institutional ownership um no high depth stocks that's That's something that uh I brought into uh my rules last year um after talking with more way more successful Traders than me that are secretive you don't you're not going to find these guys and um it's something we're not taught this like depth stuff but like that goes deeper with the fundamentals but anyway um when when the debt is

super supersedes the market cap by so much like by five 10 times it's an avoid um last year there was one uh that squeezed I forgot oh P for example did you see this one uh late last year p o yeah yeah that was a high debt stock high debt high debt yeah so uh I avoided that actually it's not some it's something that comes around maybe three four times a year and it's super nasty squeeze so by avoiding the whole category this is the way I trade you know people can disagree whatever but it

works for me extremely well if you can just avoid the entire category of high depth you're Going to avoid that future loss that future outlier loss the Black Swan the Black Swan yeah so I'm willing to give up the whole category to avoid that one Black Swan and that one Black Swan last year one of them there was a couple but um one was p p uh I think it's December it squeezed and a lot of short sellers don't understand they think oh it's an anomaly all this but it actually it was a high de

stock and um you know it's like when when I speak to these other Big traders that that tell me about this High Des side they explain it they can break it down but like you don't really even need need to know that it's like when I when other Traders come to me and they want to understand high debt it's like bro you just need to avoid that like when the debt supersedes the market cap like you look at dilution tracker it's you see debt is 10 times more than market cap no no don't don't It's

like the phone like my our phones do I need to know like the science behind how the communicates with the towers and and the circuits and all that no I just want to press the button dial and that's it you know that's all we need to know okay so a lot of times Traders they're it's like analysis paralysis they're thinking too much about it is this high debt no and that saves you a lot of money it's it's that simple so no high debt um another one What else uh institutional ownership high debt do you

look at the short interest short interest I I will gauge it thing is it's updated twice a month and I saw you interviewed B the other day um he mentioned it in there I watch all these all these podcast and shows I keep updated with everybody so um but he mentioned that some bigger players they have it on a daily there's there's ways to get it daily so um I will take a peak of it like uh you know because it what Reported on dilution tracker they have it there I'll I'll take a little peek

but I don't really consider it however you know there are certain um the borrow oh borrow High borrow fee rate stocks if something's over 300% um on on interactive brokers I'll avoid it you know I'll look to avoid it oh so interesting you look at interactive brokers uh I have the twws I only have $5 in the interactive brokers account I hope they don't watch this and get mad I only have $5 a there okay so you use their platform to check the fee rat yeah I used to trade with them a lot starting out

but uh yeah just use it to check the fee rate okay and um and that's basically it cuz DARS Aggregates the borrow fee rate from a lot of different Brokers a lot of different also I have another thing called ortex ortex like does the same kind of thing but interactive brokers is all you need orex you got to like pay extra just now David Mentioned the importance of institutional ownership and short interest institutional ownership refers to a stock as held by investment firms funds and other large entities rather than individual retail investors or Traders so

whenever there's High institutional ownership or what we call as high IO like 70% that means the majority of the float is controlled by Big Money according to David he says that they have algorithms and can Control the direction of the stock which makes it very hard for us retail traders to compete and that's very true you can easily see the institutional ownership percentage on stocks to IO as well as IO percentage David says that whenever he sees stocks with 30 to 40% IO he'll be really cautious and anything over 70% is a no trade for

him okay this is the one last reminder I promise today is the last day to get stocks too for 40% off that'll be less than $42 per month and You can lock in all those bonuses we talked about worth over $780 after the promo expires the pricing will only go up now back to the video for interactive brokers do you get to see cuz they don't have a lot of hard to borrow stocks can you still see the borrow fee for the stocks they do not have to let out yes you can see oh that's

new okay and and the thing is so I track it okay so like um on my charts I will type the number and put it on the Chart I use thinkers chart just type it as a note and you know as the stock is squeezing let's say it says 50% I put the I'll mark it down okay and then I a couple days later I look at my watch list and interactive bro say 300% I wow it went from 50 to 300 something's up here okay and um so then I'll I'll mark it down on

the chart as well but at the same time like when it starts to get 300 400 500 um this means that it's a high risk of buying some Brokers are having Trouble lending it out there's some issues going on internally with the stock like for example there was a stock the other day they did a reverse split and uh when they do a reverse split this stock had like I don't know I I'm trying to remember the ticker but it had 700 million shares and they did a reverse split it's down to 50 million shares

and so when it's 700 million shares every broker has shares to lend out for locates you know what I mean It's just easy because floats so big now when they reduce to 50 to 50 million uh the clearing firms have trouble like readjusting it cuz now they they're supposed to have less sh shares it's like a it's like a mind F you know what I mean I don't know oh yeah so they have less shares to lend out so they have to buy the people back yeah so they got they got to reorganize and reshuffle

and all this stuff and it causes a problem so what I've noticed is like With the borrow fee rate it'll even though the stock has 50 million float that's a big float the fee rate goes to 300% that means that that internally something is off there's erratic so this could indicate a squeeze coming and this can indicate buyin and all types of weird stuff and recalls and all this that um so it's it's a red flag that the the stock is not healthy to short I'm looking only by the way I only short so okay

yeah yeah yeah so everything I'm Referring to is all short oh I think we should clarify with our viewers uh the fee rate just specifically talking about is the the borrow rate for short selling yeah specifically yeah it's like uh yeah it's not the a lot of sometimes newer Traders say oh that it's the locate price no it's not the Lo price locate price is a different price the the the borrow fee rate is like the overnight uh rates and it's calculated I don't I don't know the calculation off the top Of my head but

it's like the year divided by the month or something like that but all you need to know the same thing with the high debt you don't like you don't got to go that deep into it when the borrow fee rate is like two 300% it's like uhoh something's up here yeah and then in 500% uhoh now you're now it's like okay don't trade and sometimes we'll see like with these um I interviewed a guy the other day uh I wanted to learn about spinoffs they Always spinoffs okay they always like were uh I never fully

understood them and spinoffs uh are like a a company like like has a smaller company spin out of it or something anyways a new company is born out of this bigger company um okay and uh to Short that company like they don't have short a low case to short it yet it's a big problem so those even though like the float says a certain float on like dilution track or or Wherever you want to look at float at that float is still like they're having trouble locating Shar so it's like they behave like Nano floats

even though the float is a bigger float so you don't really got to understand the the reasons why like the clearing firms are having trouble locating it and all this or or what's going on with it just have to know spin-offs are they they behave like nanof floats for the first month that's what I was told for the first month or Two they're have they behave very erratic okay and you just stay away so with trading a lot of times it you don't need to over complicate it you just got to understand the concepts and

uh and you know so it's simple for you to trade we talked about a lot of it like your different stocks that you would avoid and different criteria and key metrics you look at can you walk us through like one hopefully recent memorable trade in which you kind of looked at a ticker or Like talk you can talk tell us where you found the ticker whether it's a pump or you researched it and like different process and different key metrics you take a look and through your through your journey of shorting it swing overnight and

what happened I think I want um the viewers to understand like clearly like your step-by-step process using a recent example if you can yeah I got to remember I trade a lot man so let me um you mind if I look here for a Second oh my yeah that's fine B you look oh yeah hell yeah okay this is a good one I I interviewed the guy that that uh scam is a scammer for it oh okay okay tell me about this trade sounds juicy uh yeah which oh yeah the trade okay so so let's

go over b r EA this is this is a this is a funny one because um this was a paid pump and also with my podcast uh I get some weird people reaching out to me sometimes on email like they're like hey we have this awesome stock to you Know we want to talk about it on your podcast and I'm like these are these guys like serious because like I have a short selling podcast the podcast is called like there it's a the friendly bear it's a bear like do you not understand that the bear

is like it's not good for pumping stocks like this is uh the opposite like I'm going to short it and the Bear image the logo I changed the image recently but the bear was like a scary looking bear Like he's going to eat you you know so like why would this people want to come on my podcast stock yeah so so um they mentioned oh we have this uh this this um actually was a Twitter profile and it had like five followers they reached out to me on the Twitter messages at the time Twitter now

it's X but um and and they said hey we this guy uh this guy should I say his name this guy you can see on the podcast just call him Bob Bob this guy Bob um if people know know the friendly bear you've seen this interview you know who I'm talking about so yeah you Bob yeah Bob uh he wants to come on your podcast and talk about this awesome stock uh awesome company called Brea or it's a it's a football club based out of Italy and it's social justice impact soccer so like At first

I was like like all using this like U piece like this politically correct words Al together like so many is like Ridiculous and I was like and then they're like yes we give uh this they wrote a paragraph saying homeless people and Felons can make friends and Play Soccer make friends not millionaires that was their tagline make friends not millionaires okay and then but the guy that owns the team wants to come on your podcast and his name b and talk about it and uh Bob and then I I looked him up and it said

oh he is um the head of China at bowed Securities You know so and I was like oh that's kind of that's kind of interesting um because I I've lost a lot of money on a one one particular Chinese stock that was a bed security ones Petz um in 2021 so I was like I can't I can't just let this slide you know I got to bring this guy in the like it's not my responsibility to tell them hey guys uh sorry but I'm a short seller destroy you it's like yeah this Is not for

you it's not my job to say that it's their job to do that due diligence yeah all you got to do is like a little tiny bit you know um and I think that that person that reached out to me was probably hired like a publicist or something they don't even know what trading is or something they don't even know what Short Selling is so anyway uh we do a podcast me and this guy on zoom and uh yeah he's just like so he brings on his soccer team scarf Okay and um actually I did

some research on him he's he married into like Italian royalty and he's like super wealthy guy like he's on the board of like so many things he has like he's all over the place like in the you know like have scholarships under his name and universities and stuff so how can you have the tagline of your of your football team soccer team says make friends not millionaires when you're like makes no sense but um when he came On the podcast like uh he didn't know that I was like I I knew about like Petz and

and like I was like I asked him about a lot of heavy duty questions you can you can see the podcast for the first 10 minutes and then he he he was getting uncomfortable and then he like kind of like uh erupted a little bit like yeah you know it's like whatever but you can see it you can see but um but then I gave him time I was like you know what tell me about Brea sure you Know because I'm not I want to I want to see what he has to say about it

and um this is last year when the stock was El liquid by the way it was absolutely El liquid not doing anything for months I was like this is such a boring stock give me something real to short you know this is ridiculous and so he starts telling spewing about uh how awesome social justice impact is going to change the world and make friends not Millionaires and these evil millionaires Are going around the world and like we need to make friends and like and I was like all right all right so then I'm just in

my my head the whole time I'm I'm talking well I'm listening to him uh I'm thinking how do I short this thing it's like man one day if this thing goes up randomly like 50% I going to short the snot out of it like this guy is like ridiculous and I'm looking at the chart cuz like it's in front of my screens I'm like this thing is never going to do Anything moving it's like I'm like it's never going to do anything and then then this year like a year later magically the stock starts doing

some action and um this is where understanding of fundamentals comes to play as well as like due diligence so like I have a lot of information on the stock um you know by the way a journalist reached out to me uh in London after I did that podcast and like they were going to published like an Expose about it but uh but they decided to hold back you know it never got published but but it was going to be so I knew a lot more information about this guy because um the journalist was telling me

about it all this research they had on him anyway so um a year later it starts to move up and I realized okay so it's a year ex so when stocks IPO they a lot of times they have like a 360 day lockup so like 3 oh W 60 or 65 days something like that but a Year after the lock up the Insiders want to get out they have some shares um and the stock magically went up uh you know it it went up like 500% in the in the after hours oh and then it

came down and then it went up then it came up again and the pre-market so it was going berserk and um they were you know they were pumping it up to get their shares out you know that's that's what my thesis was and also um Bob's son had shares and you know they they play games With this so like my thesis was very strong and like this is not like a hot sector like AI or whatever hot sector is going on it's it's a a soccer team I don't know you guys in Canada do you

guys call it soccer yeah we say soccer socer yeah so I was like Europe you have to football football yeah so so I was like this is soccer like soccer is not going to just like go like a like Nvidia or something smci you know so um I was like this is Braa and like this guy like you know I don't know so anyways that was a very strong short I kept shorting that thing like for anytime it popped up I just kept shorting it now I let the borrow fee rate guide me cuz the

borrow fee rate of that thing kept like it was going up to a concerning level so I was like okay I can't swing this I want to swing it to zero but these days actually you can't really swing things to zero if because you know like like uh the old School short sellers you know like yeah they used to swing it for like weeks yeah is it do that anymore is it because of the borrow fee yeah if if any day attracts there's too many short sellers in the market you know probably more are going

to there's going to be more after this every time you do a podcast there going to be more yeah yeah these e short sellers man so but um but you know when there's more shorts so there's more more demand for for shorting more more demand For shorting is more demand for locates more demand means higher prices gets too crowded too get too crowded yeah so uh anytime in order for a good short swing it's got to be like quiet under the raadar so what would be the ideal borrow fee right so let's say for Brea

it went to what a couple hundred% I don't know it's like three 400 I think 500% so you would just close it as a day trade right so don't carry it okay yeah I I want to swing it but uh to zero but like you Know it's just too dangerous also what they were doing was taking it up 500% and then taking it like it would go it went to like a few bucks and then they bring it down to the original price and then bring it up again like a big roller coaster ride they

really good at pumping it then in the after hours so the after hours in pre-market it's it's less selling pressure so they're able to there there's less liquidity so they're able to do like these this weird Manipulation so so like um it's it like I was trading it you know because like when I see when it's that volatile they're trying to use the shorts as exit liquidity M squeeze them out first yeah so they're they that's why it's it's going so high what short seller that let's say you shorted at 150% up you can't last

at 500% squeeze you know so I see so yeah um you know it's so like I just traded with with uh my my levels for entry on something like That that is just a really high level entry like 300 400% and like I'm not full size you know so oh so you so for you like you have all the process of like finding the stock uh looking at it doing the due diligence on the IPO unlocking and insiders can sell so when how do you find your entry is it by certain percentage like you said

like 300% of the lows so for something like I think it was trading under a dollar from what I remember doing this on the top of My head and so like my scanner will pick it up at a dollar and by that time if it's trading at like0 50 cents and it's at a dollar that's already up quite a bit Yeah and then like and then I'll look for it to see where the previous levels are and then I'll I'll investigate on it so this is where this is super important CU you can't trade something

like that basically on technicals alone because you're going to get scared out of it so fast like okay When up 500% 600 oh my God but see if if you if you have the the the knowledge okay there's a 300 there's a lockup a one-ear lockup yeah there's this guy this guy Bob and his son own this many shares this is and you understand this is social justice it's not AI it's this social justice soccer the homeless people felons and playing soccer uh you know so it's it becomes less scary and then like what the

understanding of your of your entries and your rules like you Know um and sizing in and SC like what is full size for you are you within risk risk so so it's like for me it was it was with was within risk and like my entry on something in the after hours or the premarket is going to be it's going to have to be you know really really high you know like 300% up for me to even put a starter on or something on something like that on the float and everything of something like that

and then that's how I'm able to scale into It because most cuz those guys even even if you had the knowledge of of the Bob and the Insiders and the lock up like how can if you size in too early you're going to get squeezed yeah any form of size you know you're going to get squeezed and they they take it up 500% and they bring it back down to 100% so it just fell 400% down and then they bring it back up 500% so it's like they're trying to get every short in there that

they can they keep on want to Keep attracting shorts so in that case that's how you getting at the point when they are extended 300% how do you manage your your risk like where do you stop out if you don't you know the fundamentals that keeps you in but I also know a lot of short sellers because of the fundamentals they get like too convicted and like never stop out like how do you manage a balance between that when do you know to get out that's a very good question and it's something That um that

uh last year uh mid last year I implemented and I I knew I had to do it uh it was just a matter of time you know as you go to higher levels of trading you you got to you're getting a professional you got to like you have more Capital At Risk now yeah you know so it's like you got to be careful so you know I've heard people say it like you know we have bow that mentioned it last time the broker stop loss so broker Stop loss but broker stop loss doesn't work after

hours of pre-market so you have to you have to do it so one thing I've done is just $10,000 Max Max loss okay so at this point and like you know 10ks is for for me right now I feel comfortable with it like I can come back the next day and trade like noral however 10K everyone has to find out what that limit is for them so like uh it's whoever's listening to this and like if you're in your first or second Year or something that doesn't apply to you like you're what 10K is for

me for for someone else that's probably 500 bucks a th000 bucks I don't know what or 100 bucks um so it's just very important for people to understand that like 10K oh 10K but like 10K for me at this level now like you know you have to find out like I think the the main thing is is like how the next day how do you feel when you are you okay to trade the next day Normal feelings you're not you're not like uh emotionally affected you know what I mean you're not like dep depressed or

whatever form of depression or I don't know feeling down or you know feeling like you don't want to get up in the morning you're not enthusiastic about the day like I'm enthusiastic about every day I I love it so like 10K is like it sucks but I can put you know no problem I can go the next day and trade Actually the same day after I take a Max I can I can trade very uh I can still execute um but like if it's more then like I'm off see then it takes like you got

to you know I got to build myself back up the confidence and stuff so it's like for everybody they got to figure that part out you know it's like so but I think absolutely what B said is is 1,00% you got to have that broker style you you tell your broker and you know someone Asked me oh but you can just call your broker and tell them to take it out I was like for me honestly that's embarrassing like I I'm not going like if I said to do it like I'm just leave it at

that you know and I think some Brokers you can sign a paper and they close your account if you tell them to change it oh that's actually it might be necessary for some people yeah but uh but I I think that's that's super necessary and um so yeah so like when I'm talking about the BR trade it's within that risk yeah and even though it's squeezing like crazy I still know at the back of my head I'm still taking that that stop loss if I need to I could always re-enter the trade cuz that 10K

I can still execute after that trade so like I can still and it's something that I'm super highly convicted on because of uh all the knowledge I have about this stock and um I'm willing to you know reenter the trade if I need to but you Always got to respect your stops yeah um can you tell us a little bit more about the time when Business Insider kind of interviewed you and verified your past trade and I think they saw something like a 90% win rate um can you kind of describe to us the process

and what exactly did they look at to achieve that 95 90% win rate okay so they looked at uh yeah Business Insider is the real deal you know so we've had uh with the Tim syes guys that came up they've all Been on Business Insider it's all super legit um I didn't realize how legit was until they you know they they Grill you for like a week straight and they go through all your Brokers they want to call them up they want to look at all your statements they have a mathematician and like a auditor

look at it and calculate it and they and then they they say hey if if this is off we're going to take a legal action against you they kind of like you know Scare you a bit like oh you know but like I'm like it's real man go for it you know so like um and then like they say how did you learn I oh Tim Sykes like you know they kind of like it's an interrogation and um they looked at my trading journal Trader viw Trader sync they called up all my Brokers I'm not

going to say who but I I've had uh five or six Brokers since I you know since I you know since I started uh I don't know 2019 or something um and uh yeah so they They calculate everything and like because like the journals are off like Trader sync or whatever for example it's off they all they interviewed or they interviewed they they called up the CEO of Trader sync also uh and they asked him hey is this off by any means they kind of and he said yeah they usually like one or two% off

and it's like they explained it and then they cross reference it with all the Brokers it's an insane process you can ask all the Other guys that have been on on uh uh visit I have respect for them more than I I didn't know the process um I've had friends on visit Insider I didn't know they all went through that and like I asked them afterwards they like yeah they did the same thing to us okay so um uh yeah so they verified uh so Trader sync for example says like 94% and it's it's over

90 for sure you know because like the thing is I I also you know um I'm like a not only swing Trade short seller not only technical short seller but like I do scalp short kind of we we talk when people think about scalper they think about like a long scalper you know but like I'm short scalping a lot of times and reinitiating the trade and playing off the noise as well you know so there's you know so like when you do that there's a lot of Trades to go through like you know so they

had to bring in like an auditor and mathematician and all this stuff it was Uh yeah it's crazy on average how many trades you take whether it's um a day trade a scalp or yeah let's yeah I just say talk about day tra okay so I take uh so so the Brokers love me you know it's uh it's like I don't know so on a slow day like like quarter million shares and like on a hot day maybe three million shares or something okay uh trades the tickers um you know recently the it's been a

slower cycle but uh for for shorts of What I trade um so I'm taking like two or three trades a day like tickers on a hot day like the past I don't know from like December to February was pretty hot for like what I do so like um sometimes 5 to 10 tickers oh okay that's a decent amount yeah yeah it's a decent amount So like um but it wasn't always like that at all so like when I was starting out I would I would trade pumping dumps just one ticker per like um every few

days I had PDT you know you you guys in Canada Don't have that right we don't have good for you there's three trades for days and I I would use all three trades in days and I would it's easier to journal like that you journal and track and like you slow it down and I think that's so important it took me this is like I've been trading like this a lot of tickers I I it's like playing an instrument for me now at this point I mean of course especially with the risk management Because before

I imple implemented the max stop there was always that boogey man in my head it's like man can this one squeeze to Infinity you know what I mean I had to take a outlier loss but now with that Max loss in I don't have that in there it's almost like a piece of mind too um so it's it's multiple things that that broker stop is doing for you or the Max L yeah so um but yeah so like early on for for a few years I was just trading very minimal stuff now Like I know

what I'm looking for and like I'm I'm having you know I'm I'm trading a lot so okay so you also scalp short that means does that mean you also short tickers that are just p momentum trades and maybe you haven't done as much like short report or short research on them as the other very good question so when I say short scalp it's not like a blind short like um I always put the puzzle together for example yesterday there was um was it Amtx yeah it was amtx so for example yesterday uh we had amtx

and amtx is not ideal for me because it's in the oil sector or some oil related stock but same time they have a big cash need they have um an ATM like a massive ATM like almost 300 million ATM which is very diluted and they they have uh I think like 04 months left of cash like less than a month of cash left I was like or even negative I don't know very very freaking crazy low level of Cash and they had HC way W with the under the ATM so I was like okay so

there might be some games being played with this so especially on a Friday um that you so like um the morning uh that first hour in the morning I on on a parabolic move I with with that thesis in mind okay AC way right might try to squeeze us into the cloes and or they're trying to they're trying to get it higher so they can use some of that ATM and the company needs cash so they're They're going to look to use this ATM and it's like on a day three so like I'm I I

have this knowledge coming in and for at this level now it you know after so much experience after a few years or whatever I can come up with a solid thesis in a very small amount of time so it's not much brain power like it's just really quick it's just naturally what I see I don't have to like stress myself to like find it so like I'm coming in with this these I'm like okay so then I'll take a clip I'll take um a very small piece of that move of the parabolic in the morning

and then I'll leave it alone because I know I know it's like nail and bail you know so it's like I say scalp but it could be nail and bill it could be because then then after that that first hour they it starts to do like the zombie hour and grind up come solid day and yeah and then it's like HC Wing r or whoever is in charge of the ATM they're they're Have they have algorithms now walking it up on light volume trying to squeeze the shorts out from yesterday and in the morning cuz

shorts for the most part they want that all day fade they want that you know so so like they want to get those guys you know so when for example in the morning I saw like there was like a bare flag so I was like I know a lot of shorts are seeing that and they're loving it yeah and and then they they they grind it back up and they get Those guys out they overstay their welcome so like I will so when I do have a a short uh trade like you know short time

period trade like a scalp or whatever it is coming in with with a form of a a a bigger play a bigger thesis however I'm taking my profits I'm just locking in profits and I I see yeah yeah so I see my profits as like a bucket and I'm just putting green money in the bucket and then like you know shoing money in there and then you re Like either trade it the next day or something into yeah so so now I have the the the thesis that I had now I so a lot of

things too with the way I trade is like I remember stocks like because I I review them so much for myself and I like it so the next morning I'm like Ah that's the one I traded yesterday in the morning that's the one that had ATM it had this it has no news the oil sector uh it's on day two oh now it's day three and now it's a Friday okay so maybe I'll Just trade it the first hour cuz Friday Also I got to go see humble Trader tomorrow I don't want to get squeezed

I don't imagine I'm over here I kept you safe yeah yeah actually yeah cuz um whenever I travel in in the past uh I never traded well so like you know always adjust I see yeah um can you share a couple of your or maybe just one each one of your biggest losses or and one of your biggest wins that's memorable yeah so the biggest loss so um Before I had the stop loss in uh April last year uh top got me so top uh $150,000 loss it was crazy so but the the the the

thing about that one was I had 172k months before that so it you you you feel sick to your stomach after a loss like that even if you do have 172k month it's crazy it's like the there's no you know just going to feel so bad but um but yeah that one was uh it was just like an outlier one it's one that are like oh it's a pump and dump It's this it's this but it's something else going on there was like some heavy manipulation going on and I covered this um I covered this

in full detail at the last conference I had uh on March 1st through the 3D and I closed the books on everything Chinese stock related at the conference I made a full detailed presentation and I closed it you know one thing with the with the podcast and with the research background it's just like I have a lot of information on on These kind of uh what was happening and uh and I you know it's like people don't understand what they're up against um the last podcast you did with with our with the interview you did

with ba he kind of mentioned it too like the Chinese algorithms now the smart thing to do is to go long you know of these kind of things but but um I I I go along eventually but uh the day I told Tim Sykes he's like when are you going to go along it's like when I when I reach Eight figures I'll start to go long and then I laughed you know it's like but it's it's true I I I think um me just mastering and continuing to do the short side has worked well but

yeah that that loss man that loss is just losses make you better and um you know it's just uh for me now it's like I don't ever want to go through that again but like if I went through that it's like anything I can go like I can survive anything so it's like it's like a bad child Ood like Nobody wants a bad childhood but there's some uh really successful people that had bad childh able to overcome it it shapes who you are yeah it shapes who you are so it's like um ever since then

I've I've I've uh cleaned up my trading even more cuz actually the 172k month that I had before that there was some some bad uh some sloppy trading that was happening oh and you got away with it yeah I got away with it I was going to big size I was putting trades on and Going back to bed and like with a massive position on uh oh just to let it right up yeah and then or like going to do errands or like you know my trading was sloppy and then on top of that like

I remember thinking about like when I hit like 150k or 120k I was like man you know this is a like what am I going to do now like I'm I'm super rich now what am I going like this is crazy you know so you got you got little too yeah so so so then it's like once that big loss Happens it's like okay now I have um actually all all the Brokers I use I have 5,000 share Max size limit I'm just rotating the shares a lot okay there's another thing we can do a

whole podcast on or whole interview on so but the thing is I realize my behaviors uh as a as a human for myself is I'm more laser focused when I have the smaller size and I'm rotating it like I'm there and I'm like F focused when I have that big size at 30,000 share 40,000 share position I Start to get lazy and I'm like yo let's let this play out you know I see you know so um and then also just being more grateful and be more like you know tuned into like where I'm going

my purpose and all that so that it's it it makes you reflect a lot you know and then to overcome it you know to grind to go from the Dig yourself out of it and then break out just like a stock chart like a cup and handle you know it's it's it makes you stronger once you once you Go through it but like it is tough you know it's tough to go through but yeah that was that was a big one that the broker stop so that big loss is going to prevent me from a

bigger loss in the future you know so that's where I see it so after that that's where you put in like the max stop and all that okay and new risk management measures what would you because Short Selling technically speaking has inherently has more risk than going long so how do you make sure That you know I know you now you have the $10,000 Max loss how do you make sure there's enough profit to the downside that's enough for you to take the trade like what kind of risk reward do you look at and how

do you measure it so risk rewards so I'm I'm looking at uh well I I was I was always top since the beginning I believe it too like three to one is what you're looking for or like a stock has to be up um like 30 40 % you know and have like Downside potential and it depends on because like I'm I'm not placing uh one size entry in one size out I'm scaling in scaling out so like if I do see like the stock is up 40% and it could it could fade down it

could still finish green on the day like 10 15% that's like 30% slide or something like that 25 so I'm looking to take some profit of that yeah you know that move so at the same time it could squeeze so I got to keep my position small so um I'm not looking At exact uh risk reward like numbers at this point I'm just looking at like how much meat is there on the bone almost like an on artistic sense and like my my uh profit factor for at this level now like it's it's like where

I'm at now is is usually like two to one what is it like two profit factor or something like that oh yeah so when I was starting out or when I was first getting profitable it was actually a lot higher it was like three because uh but I was making less Money and less trades less trades yeah that makes sense so but yeah I'm just looking at like how the percentage is up is it like parabolic and how much room is there for it to come down and if it's going to squeeze that's why I've

at with the so far up to now I've I've come up with that no Nano floats no high institutional ownership no high debt certain country stocks uh I avoid M and um that protect those there's a reason I have those rules is because I have had Outlier losses on those and there's a common denominator to the outlier losses those ones that can squeeze 1,000% if if something has a potential to squeeze a 100000% I don't like that's or even 800% or so or 500 something some crazy percentage like that that's going to hit my Max

stop then I don't want to deal with it but like that's what I'm looking for I'm looking for is this thing like like some wild beast kind of squeeze like I don't want to deal with it so I Don't know if that makes if that makes sense that makes sense like like you said ear you want to take out that entire category of stocks all together yeah yeah that's that's on your Blacklist yeah like like P for example that one went uh like from a dollar to like $17 in like one day or something I

don't know some crazy move like that like I can't survive that that's going to hit my Max stop you know so but at the same time like everything else like You know doesn't go like that goes um I also remember from another podcast I heard that you you actually do some like iners investigation um certain stocks in the past tell us about like your most memorable investigation U floor growth let's go over that one okay but by the way I would never do something like that again now now I have too much to lose see

back then this is 2021 yeah um I had nothing to lose I I I had uh I think I Was up like 200 Grand uh and I was I was trading in Puerto Rico um I didn't own anything I owned maybe like like I minimalistic I was living out of like you know very very minimal like just uh uh five shirts five socks five underwear um you wear two pairs of pants yeah and then I would be your trading account yeah me and like and I lived across the street and um and like and that

was it you know like I rented a place very very uh you know like by the day or by the Week or something like that okay and uh and I would just go to the grocery store buy food buy most I lived off of protein bars for the most most part and I would go to the Planet Fitness uh in Puerto Rico Planet Fitness is huge they give free haircuts there and everything um so it was like super minimal okay this is how I was living but I was there for the tax incentive I was

there for Puerto Rico because like I was I was profitable at this point a couple up a couple Hundred grand 2021 and uh on a mission and you know so back then when I when when I get the text messages of floral growth and I pass it I I tell my friend about it um one of the guys at White Diamond research uh short report firm and um and we're like and and like yeah we we talk about it and like we we're shorting it like at three bucks it does like three bucks and it

comes down then like we inra day and then uh they were doing Paid pumps on it and it was a recent IPO so then anyway they have a a lockup coming up I think it was like a 90 day or a 90day lockup Prett short yeah yeah 90day or or 100 something like that 90 or 180 days I don't know this fuzzy memory I have I think it was 90 days and the stock started walking up from like three bucks it starts to go to like 10 bucks 11 bucks 12 bucks and I'm like so

I told my friend we're talking about it all the time like we're in this office So we're playing softball together we're like you know having lunch and this is just a fun conversation hey you see this weed stock you see it's crazy man it's like this thing is in Colombia like they they claim to have bro weed for 6 cents a gram they said they're going to ship it all over the world it's ridiculous so we just uh talked about it and then I looked into the filings and the weekend and I was like you

know I presented it to my friend and um he was like yeah we Need we need to get some more we I was like let's do a short report on it this is crazy this is an easy one he's like no we need to we need to see exactly where this thing is and we need to get the damning evidence it has to be because this because you can't be wrong on these things cuz like you know it's it has to be legit you know like people think a lot of these uh bag holders think

that short reports are like bogus or something but most of the short Report guys I've interviewed a lot of them there are there are High character honest people that are presenting stuff like like they covering themselves up like they're making Crossing every tea dotting every eye doing everything by the book so anyways that's what we needed so okay the next level to that to all the evidence we had to seal the deal like no one can argue this is if someone goes to visit the site and I was like we couldn't I was like I

was like you know What I'll I'll go I'll go and um I took a flight from from Puerto Rico to Panama and then it flew to bua ranga Columbia so I land in bu manga Columbia after like doing like a 3 or 4 days of research of where the facilities are it's all bogus and like I was able to find um where the marijuana plant the the facility is because uh they on their Instagram post they they had like this one of the executives posted like in some Street Corner in uh the mountains And it

had like uh so he self snitched you know that's what they call it self snitching yeah had the the street name the intersection right behind them and I was like because in the filings they made it like impossible to find and I was like I got it and then um I saw there was like a pool of water behind them okay and I was like oh so there's a pond there so I looked on Google Maps and I 3D view zoomed in oh my I was like I got it so um I I I printed

everything Out and I went over there and I stayed in in a hostel in the area bukar ranga Columbia people know Columbia for meding uh what is it bot whatever but this is buar manga middle of nowhere okay in the mountains crazy and uh it's known for Paras sailing like people go there for kite like they they jump off the mountain with the kite and they fly you know like that's that's what it's known for fun yeah okay but I didn't do that um you want to do some other St I Was thinking no I

I was open to the idea of flying into the site with the one of those things I was like oh yeah like a overhead view of what's in the facility yeah I it was actually it sounds ridiculous but it's it was that's possible so um when I was there uh I asked around I speak Spanish so like and we you know I pretended I was going there as an investor okay you know I can't say hey I'm here I'm a short report guy what's up guys it's not going To work so um with listed companies

you you they're supposed to let you into the site so they didn't let me in I went there for one day it's by the way it's a 3-hour motorcycle ride up was all dirt roads mud no Wi-fi uh no electricity and uh you know I had to time it because I if I time it wrong I'm going to be stuck up there with no lights at night sunsets and it rains and um but back then I had the mentality of like I'm not I'm I'm not leaving until his job is done you Know like like

Kobe Bryant you ever see the video of him he's like the job's not finished like the way I saw me I saw like go there until the job is done oh my God and um and and I I don't I I wouldn't do it now you know like now it's like it's uh I got too many things resp I'm responsible now back then like I you know it's James Bond but um but yeah so when I went over there uh the first day they told me to come back the next day oh okay it said

they were they Thought I wouldn't show up so three-hour motorcycle right up and then all of a sudden you think about it like me showing up in the Mountaintop in Columbia like how did this guy get here how did he find imagine you show up to the mountain in Columbia randomly you know like oh my God so it's like um but yeah so then there was guys with guns there you know it's like you don't know if they're loaded or not I I don't want to take That chance but they anyway they told me to

come back the next day and like I really wanted to like pull out my phone and start taking photos because like I saw there was nothing there but um oh so you went to the facility is it an actual building like what it was it was a sign it was just a sign this say floor growth and like some shrubs in the corner but they they claimed to have 350 Acres of a marijuana facility and like they're going to export marijuana all over the World for 6 cents a gram and they have no this is

part of the short report there's no infrastructure they have no roads no even if they did have the marijuana they couldn't take it out it's on the mountain like you said yeah unless they Paras sale they get a kite and they they take the wheed and I don't know how they're going to do that um anyway I came back the next day yeah so so when when I left I didn't want to argue with these guys they had guns but Like you see like this is uh this was my mentality at the time I was

like you know what even if they have gun I'm going to show up again the next day I don't care whatever okay so I I took the motorcycle again and I went back three-hour Journey 3 hours on this dedication yeah and then I had to park the bike and then walk up the last like 100 ft cuz it's so Steep and muddy oh my God anyway when I went there uh they They told me oh again they were surprised to see me I said oh it's closed you got to go back and come back with

the government ID or something and then that's when I was like like I'm not going to just leave like I didn't fly over here to you know just to leave yeah so I told I I was in Spanish I was telling that I'm an investor and like I came here from Miami I'm not from Puerto Rico actually but like and and like you know because their offices at the time They had one office in Miami and I was told by this guy and I because I I made phone calls and like I kind of like

got their names and I would use their names oh Jose said this and this and and like I can't just leave and then then one of these uh execs showed up he came and as I saw him walking towards me I was like because I know they're not going to let me in like fully I'm just going to take my phone out and start taking photos and videos and by the way I had a a camera Pin are right here taking C video of everything okay and then um uh yeah I take a I started

taking photos of the guy like they know I'm I'm up to no good now and then they see the camera then the oh no the exec says like what is that and I said oh no it's a pen he said that's not a pen you're not an investor and then they all look at this is like a Clint Eastwood movie they all look at each other and they're like there was a A moment of silence and I'm like uhoh so like I know what they're thinking they're thinking we could just make this guy disappear no

way I I what else could when they all look at each other it's like if they would have there's no Wi-Fi there there's no this is the mountain so I was thinking man you know for a second and this was crossing my head the whole trip there I was like if they just throw me in the shed no one will know that I went there Or anything I guess my friends in Puerto Rico but like you know I could just disappear here so like uh I just got on the bike and I I I left

and uh I think when I left it like they just called it off but uh but I think for a moment they were thinking because like they had guns and stuff you know and like they were they look and they're like what do we do now those the soldiers or whatever they had like uh camouflage you know they like I don't know if they're I don't Know what they they're not normal security not noral SEC not noral security uh but like they were waiting for orders they like they're like what do we do now this

guy is obviously not an investor he has cameras I I thought they were going to steal the camera at least or grab me take the camera thought they take it away yeah by the way the exact he tried to grab me and I filmed it it's on I have a YouTube short of it oh my God it's like 10 seconds and like And yeah I got out of there anyway um after that I uploaded all the all the videos and stuff to the drive my friend was like the white diamond was like okay we got

it I was like all right I'm out of here that was enough and and I got a little bit of footage of the plants and those plants were probably not even real marijuana plants I didn't go up enough to feel it or whatever it was just like a little BR like shrubs you know oh that's all they had that's all they had So what was this the the the the solders garding like just so making sure no one yeah so so so I think you know they just made this front of a a big marijuana

facility 350 acres in the mountain and a sign cuz the photos on Instagram it was basically a Hollywood set oh it's like it was just a Hollywood set but they did have somewhat of a physical location they just didn't you know they couldn't do what they were saying with it so it's like a lot of times with these scammy Kind of stuff it's like there is some truth to it yeah but there's not not the whole truth it's not even close yeah and this would happen a lot actually we're in Vancouver but Vancouver is known

for the Vancouver Stock Exchange used to be the penny stock capital yeah uh like mining like they would say oh we found the gold mine in Brazil or something and like um who's going to go to Brazil on the Amazon and see if that gold mine is correct you know so true yeah but there Might be a sign there that says you know with the guys taking a photo like you know it's Hollywood but um yeah that was Columbia then I came back we did the short report the stock was at all-time highs what's crazy

is the stock was at all-time highs when I was there like 25 bucks and then short report comes out it cracks then it bounces crack then Fades and now it's at trading under a dollar now or like about a dollar they've done a few reverse splits so like their stock Was like when it's at a few cents they do a reverse split comes back up but um yeah they they they got rid of their site by the way now they focus on like another form of marijuana oh so with that short specifically did you short

it was it a swim short for that one that was since that was 2020 before everything got expensive yeah yeah yeah so so that was um I did put on a position cuz like you know that's the thing about short reports too is that You feel obligated to short it that's the problem with it too uh so you have to like fight that problem and I know a lot of short sellers they they they're invested in it they did so much research it's a form of investment and they put on a position and they get

squeezed so actually I looked to short it after before well that one I shorted before a small position and I anticipated it to squeeze but you know it's just it's so much better to wait for the squeeze but Since since you do you're part of that report you invested you feel obligated to put a a position on also when you put a report out um you want to be honest to the people like you you you're putting the report and you you believing this scam to be a scam that you have skin in the game

you put your money on the line as well you know what I mean so it's also good faith as well so yeah I I put a a a swing position on and I and I also shorted an intro day you shared a lot About your story today with our audience about how you get to where you are today from humble beginnings and now as a short seller who do like a lot of elaborate research right what do what do you think is the one lesson or key takeaway you want audience watching this episode to get

from your conversation today okay so it's it's just um it's it's a long journey you know so it's a a marathon not a Sprint it's it's like you know you you can't just expect to uh Have your process down like we talked about a lot of elaborate process that I go through take a lot of time to go to to have be comfortable with that process where you just you it's almost like a like a sport like I think about Tom Brady with with uh the NFL football uh he's like a quarterback getting Blitz and

he has all this experience and and planning ahead that he can make a split-second decision like high pressure decision making how do you make Decisions in a high pressure environment like I'm a discretionary Trader and I've interviewed uh Jack schagger at Market Wizards and he said most nine out of 10 or something of the market Wiz were discretionary so that's what I'm I'm referring to systematic trading is a different kind of trading um but you know it it's all similar in a way so it all takes a while to develop if you're in two or

three years in the game don't think you know everything you know you Definitely don't you're still kind of a noob um a lot of people you know a lot of Traders for the most part that that I that I come across they're like a year or two in the game and they think they know they know more than they think they know and that's where they get humbled you know like the humble traiter this is like the whole name of the it's it's so so true so it's all about getting the hours in surviving staying

you know break even And or just staying in the games that you're enthusiastic enough or have the energy to study and and and learn more and grow more like that's that's that's the way you get good at this over a period of time it's like because you need that you need to stick around long enough for that knowledge to compound you know so how do you stick around L because like if you suffer a big setback or you take time off for a big period of time then you're missing Time out for that knowledge to

compound you know like if you if you're out for 3 months 6 months one one year it's like then it's going to take longer cuz like that's just you need you need to accumulate that knowledge so it's a uh I was say you know just just uh look to improve 1% a day you know just uh over a period of time every every day you look for things to improve uh where can people find you and your podcast specifically okay so people can find me I like uh in Instagram is good reverse long uh friendly

bear podcast uh YouTube friendly bear podcast um X reverse long reverse unor long um conscious tradingacademy.com and uh we're doing another conference later in the year m in La yeah and um you can always I'm I'm at the US Bank Tower the the I love the US Bank Tower in La like uh I'm there chilling in the skyscraper that's where I'm at yeah you actually rent like an office there for trading that's cool Yeah heavy security though that you know just uh you don't want random short sellers yeah cool thank you so much David yeah

absolutely thank you Shay from discretionary Trading into exposing a weed scam in Colombia David's experience in the trading industry is really fascinating please comment down below and let me know what you learned from this podcast and if you have any questions for David down below thank you so much for tuning in to the video today Don't forget to like this video down below you can also listen to other insightful podcasts and other experienced Traders on this playlist over here