A New Blueprint: David Capablanca’s Journey into Short Selling

Written in partnership with Beth Wilson

David Capablanca’s career shift from architecture to short selling is nothing short of remarkable.

Trained in architecture, he had a keen understanding of physical structures, blueprints, and precise calculations which he transitioned into his new career.

He navigated a tumultuous career change, a grim health prognosis, and a volatile market bubble with significant resilience and determination.

“In 2017, I worked for an architecture firm that wasn’t paying me wages that justified the numerous loans I took out for a master’s from the best architecture school. I realized that most architects were working and paying those student loans until they retire,” says Capablanca.

This reality check, coupled with a devastating health crisis, set David Capablanca on an unconventional path. In 2010, while pursuing his master’s degree, he was diagnosed with a brain tumor.

“The doctor said, ‘Hey if you leave the hospital, you could die…We got to have the surgery for this tumor…,” says Capablanca.

This near-death experience shook Capablanca, changing his perspective on life and career.

His health crisis led to an additional six figures in student debt due to medical bills and extra classes necessary to maintain his health insurance. Following a year of recovery, Capablanca found himself returning to his studies with a different mindset. He no longer wanted to pull all-nighters or subject himself to the pressures of his previous lifestyle.

“I don’t want to live like that. Because like I had a near-death experience…I was a different person,” says Capablanca.

The moment of reckoning came when he received his first student loan bill. Despite a master’s degree and top-tier experience, he was earning a low wage, staring down the barrel of hundreds of thousands in student debt. It was then that he decided to change course.

“I thought to myself, ‘I am in the United States; this is a capitalist country; people become billionaires by creating something…I need to do something like that,’” he remembers.

He considered both stock trading and real estate, but trading clicked. Signing up for trading courses, he dedicated himself to learning the ins and outs of the market. In total, he devoured over 10,000 hours of courses over two years often going ‘offline’ from social media to immerse himself in studying.

Trading and investing, particularly short selling, is often seen as a high-risk game reserved for those trained in finance. But Capablanca, an architect by training, saw patterns and structures in the financial markets just as he did in architectural designs.

His insatiable curiosity and a burning desire to understand the intricacies of the stock market, alongside his countless hours of studying, made him a success. While this self-taught methodology was far from a smooth ride, but he used each challenge as a learning opportunity, continually refining his strategies and improving his analytical skills.

Despite being aware of the risks, he decided to commit fully, taking a leaf out of Hernan Cortes’ book and ‘burning the boats.’ This mindset, derived from a historical tale of a Spanish conquistador who burned his ships to prevent retreat, symbolized Capablanca’s commitment to his new path.

Capablanca’s persistence was instrumental when he identified an opportunity in a market bubble. Using the knowledge he had gained from his studies, he navigated this volatile market condition effectively.

His journey from the architectural drafting table to the trading floor is a testament to his resilience and adaptability.

“I decided to master short selling, and that’s still all I do,” he says. “A lot of all these companies, they’re small, they’re smaller companies, they need cash, they’re going to do whatever they can to get cash to manipulate their stocks and go higher. I’m more sophisticated, I understand how to trade around the algorithms.”

Today, he’s sharing those insights on his podcast, The Friendly Bear. His weekly show interviews some of the best traders in the world, sharing their insights so that others can apply these nuggets of information to their own strategies.

David Capablanca’s story is an inspiring tale of transformation, resilience, and financial success. It serves as a reminder that sometimes, the most remarkable victories come from the most challenging circumstances.

When asked if he has any intention of learning other kinds of trading, he’s determined to stick to the decision that he made on the first day.