Council Post: Short Selling In Volatile Markets: Discipline Comes Before Growth

On June 4, 2026, the U.S. pattern day trader (PDT) rule was eliminated, removing the prior $25,000 account requirement. The change allows short selling even with as little as a $2,000 margin account, and—unlike the old limits—some brokers now permit unlimited trading volume. David Capablanca, a trader and author of “Short Selling Master,” argues the practical benefit can cut both ways: traders without enough knowledge may face “outlier losses” that can rapidly drain a meaningful share of an account and damage career prospects. He also notes precision matters, including caution around “nano float” stocks and potential overseas manipulation.