Investment Myths Debunked with Debora Rosciani from Radio24 (main financial radio in Italy)

by Andrea Unger

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A radio journalist from the "Sole 24 Ore" group (the leading financial newspaper in Italy, equivalent to the Wall Street Journal) interviewed Andrea about the false beliefs that contribute to making the investment world even more dangerous.

Watch the interview to learn how they debunked these myths, from the illusion of getting rich with a snap of fingers to the myth that there's some "secret ingredient" that can transform a few euros into immense wealth.

👉Check it out now!

 

Transcription

Debora Rosciani:

Hello everybody! Today we are going to be talking about an extremely important topic: how to invest, how people invest, what's their idea of investing, what's their approach, their strategies, and their methods of investing. 

We'll do this with the help of the protagonist of a success story that represents a model, a goal, an objective for many people. However, we really need to say that often, the ambition to replicate other people's successes is not enough, because today we're talking about success in a very special field. A field that arouses a lot of curiosity but to which people often approach with illusions, and so they often end up in disappointment. 

If you're watching this webinar, you already know who I'm talking about. Today I have the pleasure of speaking with Andrea Unger, a professional trader who's the only one in the world to have won the World Cup Trading Championships in the Futures category 4 times.

Let me introduce him to you. So Andrea, here we are! Welcome! 

Andrea Unger:

Thank you, Debora. Hello everyone! Good morning!

 Debora Rosciani:

So, why are we talking with Andrea today? First things first, Andrea's not here to give us the recipe or the secret to achieve the same results as him. Today Andrea will explain to us, in a simple but very clear and strong way, that investing is about method and patience. It's a matter of being professional. 

Contrary to what many people believe, there are no tools that can make you rich. They believe that taking a one-month course in trading - so to trade the markets - is enough to make ends meet and solve their family's budget issues. But trading is an extremely complex thing. It certainly offers many possibilities and many opportunities, but it's also necessary that you're prepared and have the right mindset. It's essential to have strong psychological and emotional defense mechanisms, as well as a method and a lot patience.

Also... I want to mention another aspect that's certainly quite important. By confining us in our homes, the pandemic has increased the amount of time we spend online, bringing many people closer to the world of trading. 

Plus, there have been some financial news items that aroused people's interest even more. You'll undoubtedly remember the “GameStop” case that brought people - especially young people - closer to the world of online trading. 

Meanwhile, however, there was also an intensification of the activity of Consob (which is the Italian authority that supervises the financial markets) which, day after day, keeps on shutting down dozens of platforms that offer financial services illegally.

So what does this mean? It means that, in addition to an increase in interest, we also have an increase in the number of people who, acting in a deceitful, dishonest, and obscure way, offer investment services that don't offer any prospects or even try to swindle people. These offers are scams. 

So what's the point? The point is that we need to put some order in this subject. We need to align the essential information with the information that we need to keep in mind when we approach the world of online trading. And this is exactly what the Unger Academy does: it offers training. It offers the right skills to work in this industry. 

So, Andrea, I said everything I wanted to say. Now I'd like you to take me by the hand and accompany me on this journey, the same way we'll take by the hand and accompany all the people who are curious and pleased to follow us.

The first question I want to ask you is this: according to your sensitivity, work, and experience, what do people ask for, what do they consider when they approach investments? 

I'll tell you about my experience with Radio 24. Many people perceive the importance of planning their financial decisions and investments based on the needs of their families. But then, after reasoning on that, they still come to a final question, which is always this one: “... So what? What should I do? And so? This investment they're offering to me, how much can I earn from it?" Financial advisors are often astonished by this behavior because it's as if, in the end, people forgot about their initial reasoning. So what's your experience?

Andrea Unger:

Same thing here! Well, so... Indeed, the approach of people, or the mass let's say, to the world of investment is often dominated by two main motors. The first one, as you said, is to improve the family financial situation so that resources are used correctly, so that there can be enough money for children, for their education, for their growth, and so on. But then there's the other driving force, which is the mirage of easy wealth. 

Although in a different way, both these motors give the illusion that there exists some fundamental secret in the investment world that, once explained, makes everything easy. Those who ask questions like, “Yes, but what about the returns?" They are the same people who eventually say, "Yes, okay, but in the end, how much do I earn?"

As if it were an automatic thing! You snap your fingers, put your money there, and you get a monthly income. And then there are also those who believe that there are tricks to multiply money. These people often fall victims to scams, as you said before. 

In fact, you were far too optimistic and conservative when you spoke of one month of study. Actually, it takes a lot more, but people believe it takes a lot less. They actually believe that they can get all the information they need to make money like crazy within a week at most.

The GameStop case, which brought the profits made on the stock markets to the fore (and in that case, there was also a sort of revenge of the small ones over the big ones), makes people dream! Because, indeed, someone in the right place at the right time would have probably made a lot of money in a short time, making the best deal of their lives, but the truth is that it's hard to be in the right place at the right time, and people automatically forget about that. One news item is enough to make them believe that it's really simple, that that episode can be repeated continuously, and even more so, that some better-informed people on the other side can indicate what that episode might be.

I often see people on Quora asking questions such as, “What crypto will gain 100x next year? or 1000x?" But how on earth can you ask such a question on the Internet and then listen to someone who tells you, “Hey, buy this one! It will increase a hundredfold next year”. 

If you just think about it for a moment, you'll realize it's total nonsense. But people want to believe that that's true. They want to delude themselves. And this illusion rests upon both a solid foundation (that of increasing the family net worth) and a more flimsy idea of getting rich. But in both cases, the illusion is the real driving force. 

And this is a big problem, not just in Italy but all over the world. I've traveled around the world and seen that, in this case, “the world is the same wherever you go.” In every part of the world, there are the same illusions and beliefs. The same dream of the slot machine around the corner: you pull the arm, the money comes out, and you go and do whatever you want. Which is also what most people dream. People are fascinated by the world of trading - and investments in general - because they believe they can stop working and get the money for free, which is absolutely not the case!

However, this makes people live with the illusion that they can find something like a modern Eldorado in this world, which is unknown to most people. And that's why there's so much confusion. Initiatives such as the “financial education month” are all welcome, but it's still not enough, in my opinion. Because even in that case, it's pretty hard to distinguish those who convey the correct messages from those who are just beating around the bush and speaking most advantageously for themselves. 

Unfortunately, there's a lot of misinformation in this field, which is dictated precisely by the desire to believe in something else. A bit like weight-loss diets, you know. We delude ourselves that there's a magic ingredient that can make us lose weight even if we eat Nutella French toasts all the time.

Debora Rosciani:

When I talk about these topics on the radio, Andrea, I, too, use metaphors very often. And I must admit that I'd never used the diet, but I'll undoubtedly steal it from you and use it on the radio because your example is really on point. There's a different diet for each of us, because we all have different metabolisms, needs, lifestyles, which means that even a correct diet should be adapted to our profile and characteristics, exactly like investing and saving. 

So the message we wanted to give in this first part of our conversation is this: let's dispel all the myths around the world of investment because no one gets rich as quickly as many people are led to believe.

Nobody knows the secret ingredient! And also, for those who work in this industry - I do it in the field of communication, you do it in the area of trading - nobody is giving any secret piece of information that lets us increase the capital we could theoretically invest. You do it practically; I do it theoretically because, among other things, the company also controls me in what I do. So, I also have these limitations about which my listeners don't know. 

Before we say goodbye, here's a last service announcement. For all the people who'd like to delve deeper into the concepts we have explored during our conversation, you can order Andrea Unger's book, "The Unger Method," which is available on the Unger Academy website. You'll receive the book at your doorstep. It's free, and you only cover the shipping costs: so happy reading, everybody!

 

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Andrea Unger

Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.

I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. 

In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.

Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.

Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.