Capelo, a veteran trader and mentor from Spain, found his edge in trading small-cap stocks over the past 11 months. He truly believes there are easier opportunities to find in stocks compared to Forex and Futures. After joining Trade The Pool, he passed the Flex 50K evaluation on his first attempt, completing it within a week. Using Tradervue to journal and disciplined sizing (100–600 shares), he overcame a slow start and initial platform unfamiliarity. His YouTube channel, @CapeloTrading, mentors a global community by sharing insights from his trading journey.
His shorting strategy focuses on small-cap gappers with 100%+ run-ups, entering at the first significant red candle in pre-market or early hours using price action, volume, and news catalysts. With minimal indicators like support/resistance, VWAP, and 9 SMA, he maintains a 57% success rate and a 2.2 risk/reward ratio, typically closing trades near the market open. Avoiding late-day setups and oversized positions, Capelo emphasizes patience and advises traders to master one side, such as shorting, before diversifying.
He aims to grow significantly with Trade The Pool.
Tip 1
Timing entries with volatile small caps
I wait for the first sign of weakness. Like the very first red candle. It’s big enough. And of course, it has to be after a huge run-up. And if it's after 11AM, I will try to avoid that.
Tip 2
Advice for new traders
It's difficult to be an expert on both sides of the market. I would recommend to start with one thing. And then once you are really good at it, then change to the other.
