Enrico Maria Colombini - You are the enemy

Ok guys, here we go again with the new talk. You are the enemy. This is the title of the call. In the highest ah no in the high stakes world of crypto, your worst enemy is in the market. It's you.

These are your words, I think. So please welcome on the internship to Enrico Maria Colombini the professional trader, entrepreneur, founder and CEO of Nova. So here we go again. Nice to see my friend again. Big to him and the stage is yours.

Thank you. Just for the beginning, they asked me to do the speech in Italian because they didn't have so many speech in Italian. So, I'll speak Italian for today. Eh, I know. Okay, so, good evening everyone.

This is the pointer, right? Super. Let 's do a check right away. Where does it work? It does not work.

I'm moving on. Ah, I have to go back to go forward. Okay, okay. Exact. So, let me introduce myself very briefly.

My name is Enrico Colombini, I'm a former banking financial advisor. I come from an institutional environment, then 4 years ago I decided to become completely independent in the world of trading and investing. I've been passionate about cryptocurrencies for some time, which is also why we're here with all the companies and the community we bring. And what I want to bring today is a cornerstone of the world of investments and the world of trading. In fact, I titled this speech You Are the Enemy after a very famous book.

I won't talk about ego in this case, even if ego plays a role in some nuances, but I will talk about motivations in the world of trading and investing, which is the factor that tends to cause the most money loss ever. Statistically we know that 97-98% of traders or retail market operators lose money. So it's a horrifying statistic in my opinion that I unfortunately see every day because I have a company that offers trading education and automation services, but that over time technology is actually going to solve. Then we'll also talk about this thing here and obviously also about the man- machine comparison because the machine doesn't have emotions, obviously it lacks many other things that humans have. and so there are pros and cons.

Quindi prima di tutto voglio portare che cos'è Nova e poi parliamo del topic di oggi, nel senso che la nostra azienda, nonché community, in realtà nasce da community 4 anni fa con l'obiettivo di portare educazione alle persone, perché io lavorando nell'ambiente bancario mi sono reso conto ehm che il concetto classico di investimento per la persona comune, eh ve lo dirò in dialetto veneto perché a me piace, noi siamo veneti, la persona va dal consulente finanziario e gli dice fatti e fa bene. Ok, I think it can be translated, you do it, I trust you, try to do your best. Unfortunately, I've come to realize over the years that most financial professionals working in the institutional sector, especially financial advisors, aren't truly professionals, but often lack many skills that they actually need to make a profit. the fact that institutions make money regardless of whether their customers make money or lose money . Quello che invece noi vogliamo portare a livello italiano è consapevolezza, è educazione, è il fatto che le persone sappiano come vengono prodotti i soldi, come si distinguono le varie forme di moneta, visto che oggi eh siamo in un in un evento, insomma, che porta anche questo tipo di tecnologia, come consapevolizzarsi, come proteggerli, come moltiplicarli, come non farsi inculare.

visto che con tante persone con cui mi sono incontrato, insomma, qua all'evento, ho sentito nomi di Scami Ponzi che sono girati a destra e a Manca, destri a sinistra, perché Manca è sempre veneto e nel mondo crypto più che mai, cioè io che ho un'azienda di trading e sono un trader, penso almeno un nuovo schema Ponzi a settimana tramite i nostri clienti ne vengo a conoscenza. But why are so many of them born? Because if they didn't make money they wouldn't continue to proliferate like mushrooms. The fact is that people are so unaware and ignorant, but in the good sense of the word, in the sense that no one has taught them and therefore they ignore certain types of information, they fall for it because they fall for the decoy, right? of easy money.

So what I want to bring to you today, in addition to our mission and I'm not going to talk about Nova specifically, but I just wanted to give an introduction to who we are and what we bring to the company, but it is literally the fact that the human being is the enemy of his own investments. We're going to look into this further and try to find some solutions. Then I saw many people who came here to the panel also to get to know me a little better, who maybe came to our stand. So lastly I added and reuploaded this slide to illustrate what we do at a corporate level. Okay?

These are our four founding pillars. Potete vedere che magari dal pilastro 1 al pilastro 4 in realtà si si potrebbe banalmente non vedere una connessione quando in realtà l'investitore stesso e i soldi che l'investitore fa li fa tramite la sua umanità nel bene o nel male ovviamente nei profitti e nelle perdite, però è tutto perfettamente interconnesso e la crescita personale è parte della crescita dell'investitore e viceversa. So what we want to bring as a solution to the market and as a company is to work 360° on what the person is. prima di tutto su che cosa sa, quali sono i suoi parametri mentali e le sue convinzioni sul denaro, che spesso sono esse stesse le nostre limitazioni sul ingrandire il nostro patrimonio, passando per strumenti tecnologici principalmente che semplificano la vita perché avere delle rendite che sono indipendenti dal nostro tempo oggettivamente ci danno tempo, banalmente parlando, cioè le rendite passive, quelle intelligenti, sono l'unica cosa che a a mia a mia visione di capitalista sono la cosa che ti permette di comprare tempo. They tell us, "You can't buy it, but actually, by tinkering a little bit with the right technology, you actually can, not to mention everything we then bring to the human level."

Now I'm not here, I repeat, to talk about my company, but it was just an introduction. These are the objectives we will bring to this panel, so how emotions influence the crypto market, because the crypto market is the most influenced and the most influential towards people. Simply put, I think we're all crypto investors to some extent. Who can 100% say they have never made an investment due to FOMO? You see, nobody raises their hand, it's banal, right?

But it's the truth. and often we move in this way and even more often we don't realize it . E quindi oggi voglio che approfondiamo i bias cognitivi, delle semplici strategie non solo di gestione del rischio, ma di gestione delle fluttuazioni emotive e non solo quelle di prezzo e il principale ruolo dell'automazione, anche per dare un po' di spunti, perché magari qua oggi ci sono dei programmatori e a me piace condividere delle idee e magari ci confronteremo perché il programmatore va a risolvere tantissime cose che sono in realtà il danno stesso dell'investitore, semplicemente perché nel programma non ci sono le emozioni. So, since we've been talking about FOMO, I think we all know what it is. I wanted to include all the definitions, so that the more curious can take photos, delete them, or ask for the slides later.

That's absolutely no problem. But first of all, before talking about investor emotions, I want to point out that many people don't realize this, but we operate in cryptocurrency—I mean, in the only market that has an index of fear and greed. The only market that has an index of this type. Do you think why? Because it's the only market that is truly so influenced by emotion.

It seems trivial, but in reality it is not at all and most of the big movements in the crypto market are for news or fake news, for the YouTuber who sponsors the Meme Coin for a lot of things that happen in the landscape of social media, newspapers, online in general that moves people's minds for better or worse. So, first of all, to talk about emotional management, we need to be aware of what's happening inside us, while we're in the moment of analysis rather than entering the trade, purchasing our cryptocurrencies, or whatever you're doing at that moment. Okay? So I recommend having it, I didn't write it in the slides, but I recommend you have a timetable, okay? a bulleted list of actions to take and analyses to do, not only of the market, but also internally to try to understand if it really is the right time to make that investment, but above all if we are in the right emotional state to make that investment.

And I can assure you that with the right schedule you can greatly optimize performance, but in reality, the job of a trader is not to achieve better performance, but to make fewer losses, and it should also be the job of a conscious investor, therefore identifying critical moments. Okay, some sudden news, I remember, I spoke with a lot of people, even in our community, some of whom have made money, for example, with Trump's cryptocurrency, right? In the first 24 hours we made a splash. We shared it on our Discord, and people have made tons of money. In the next 24 hours or so, anyone who entered that asset essentially lost money because there was news, we were aware of it, but news has a timing, objectively speaking, and then emotion subsides and that's all there is to it.

riconoscere i segnali di stress e infatti nella nel nel lista delle delle azioni da fare è prima di effettuare qualsiasi operazione fermarsi un attimo, prendersi almeno qualche secondo per autoanalizzarsi, sentire il battito che spesso non lo ascoltiamo, sentire che pensieri abbiamo nella testa, cosa che che confronto abbiamo con il tipo di investimento che stiamo per fare. Are there emotions that are strong in us or are we cold and controlled? This thing changes a lot and in addition to the breathing technique pause , I don't know who is as fanatical as I am about breathing techniques that don't just help you calm down. I gave you one to calm down, so you inhale for 4 seconds, hold it in for 7 seconds, exhale for 8 seconds. It helps to slow down the heart rate and lower cortisol, simply speaking.

So I lower my stress level mechanically, without having to think about it, because it's a button in my body that says lower cortisol, basically, exactly like this. There are endless breathing techniques that can also be used for many other things, so I recommend you delve into it further . and a routine. So not just the task list, I don't know how much time I have, but I'm the last one, so even if we take 5-10 minutes more, I hope I don't do any damage. I actually have a lot too, so we'll try to do it quickly.

Um, having a checklist, as I was telling you, and set times. A huge mistake I see in crypto investors, especially during bull runs, as we hope will happen soon, is that they have the urge to check their wallets every 10 seconds. But I ask myself, what the [ __ ] is it for? But nothing, I mean it only serves to create more stress for you because maybe 10 seconds later it has decreased by 2% or 10 seconds after that it has increased by 5. Okay, as long as you haven't sold anything, I mean they're just numbers, you understand?

So having a checklist also in terms of times, I check in the morning, when I wake up, maybe I go to the bathroom, do my business, check how much money I maybe estimated I'd make during the night, but I repeat, until you've sold it, it's not money made. Same exact thing maybe in the evening, depending on whether I'm trading actively and a little faster or it's just a passive investment where I check if it's an x- month investment, but it doesn't make sense to look every day, but absolutely it's just more stress and free. Okay? Well, here too, always on the topic of useful exercises, I wanted to put a few more in there, like the body scan, I don't know who knows the body scan, raise your hand. Just you, not the X-rays.

Eh, body scan what does that mean? It means getting into a comfortable position, like meditation, okay? or even lie on the floor and scan ourselves with our minds, eyes closed, and feel every part of our bodies. This thing, that is, this practice that literally takes a few minutes, reconnects us with ourselves because trivially, especially in the world of investments, when emotions are strong and the mind does whatever it wants, we separate ourselves from what is our body, but that's not good and above all it's not useful for the conscious investor. No, come tante altre cose, i 10 minuti distacco, appuntarsi le emozioni che andiamo a provare, tenere un quadornino che non per forza è il trading journal, perché il trading journal segno le operazioni che faccio, gli stop loss, i take profit, gli acquisti, le vendite, eccetera eccetera, ma un altro quadrino a parte dove segno solo come io sto quando sto facendo le mie operazioni.

Why? Because that alone can become a manual that turns you into perfect investing machines. Because if I recognize, according to the previous rules, that at the moment I'm making an investment there's something emotional that's upsetting me, I go and open my notebook again and see that I 've already experienced it and maybe I've even written down how I resolved it, you know? After a while, they become habits, and I assure you, performance benefits as a result. Now I want to give you some of the most common examples, so to speak , of how emotions essentially influence our investments.

So the biases, okay? The first is confirmation bias, so I know that probably almost everyone has fallen for it, okay? I'm absolutely convinced that this crypto project is the turning point. So, what's going on? Every time I see a YouTube video, an Instagram post, a post about an ex, or any other social media, I say, "Oh yeah, you see, I'm right and this project is devastating."

This happens endlessly, especially in a highly media-manipulated world like crypto. So a very, very interesting mitigation strategy, in my opinion, is to do the opposite work. I am convinced that that project is valid. I'm going to dig up all the [ __ ] I can about that single project. I'm going to look for all the technicians who speak badly of that project and its negative points.

as in fact, well, it's a union, in short, the devil's advocate is no longer against it. By now I've gotten the mood, the effect still and I'm sure that here too we've all fallen for it, that is, being morbidly attached to our purchase price or to a certain selling price at which we want to sell, right? And how many times—I'm speaking from personal experience in this case—how many times have I found myself with the price hitting the take profit by a hair's breadth, only to then shoot back in my face and even hit my stop loss? I'm talking about trading here, but when it comes to investing, it's the exact same thing, and often, especially in the crypto market, I can assure you that when there are emotional prices for what the market is, market manipulators take advantage of them. I'm convinced that Ripple will go at $10, you can almost certainly bet that at $9.

8 it will hit you in the face. I took a random example, eh. These are three more biases and they are the last ones I wanted to bring to you. I'll give you a very practical example of overconfidence from a guy in our community who unfortunately didn't listen to me, but has rightly always had experience with Trump's crypto because he was the one who spotted it on our Discord at 2-3 in the morning, practically. Who knows what he was doing on the screens, eh, it was Friday night, I remember it like it was yesterday, because I earned a lot in that crypto.

He spotted the crypto. He made €50,000 in profit within 24 hours. Okay . And one says monstrous, he went into overconfidence, very heavy. Within a month and a half he had lost everything.

Three months later, for a month, a month and a half, he wrote morbidly on our Discord because it seemed like he had become God come down to earth. After 2-3 months I saw that he wasn't texting anymore, I called him and asked "Bro, what happened?" "Eh, you know, here I burned all Trump's profits , eh." I said good but I told him. This is overconfidence, so for better or worse this kind of parameter can happen, okay?

The same thing can happen in the negative, so it 's not overconfidence, but it's, um, what do I know, I take a certain stop loss, I get too demoralized or I believe in a project that instead goes under, I get too demoralized. Many people even left the market because they no longer had confidence. So excess always goes bad, both in the positive and negative pole. The loss version, okay, even here from this point of view it is very similar to what we saw before, anchoring, but related to loss or profit. So anchoring is more, eh, I relate to the purchase price, like I bought Bitcoin, who had bought it at the last high, a lot of people with the previous dump sold inexperienced rightly, right?

Because then we know that it goes back up, but maybe they bought it at 100,000, resold it at 80, so you made a -20 in the space of a few weeks just because in this case, okay, you tend to fear more losses than you actually do, badly, because you have n't calculated them, you are capable of managing emotionally. La maggior parte delle persone non si fa un plan iniziale, quindi se io metto, ipotizzo, compro un Bitcoin a 100.000 ma non sono mentalmente ed emozionalmente disposto a perdere €20.000 su quel capitale lì, è ovvio che poi chiudo ed è ovvio che poi mi mangio le mani fino ai gomiti quando Bitcoin arriva a 120. Ma è questo l'ultimo che è il comportamento del branco.

In my opinion, this is one of the most dishonest things in the crypto world because you just need to open a social network and look at how many people talk [ __ ], if you'll pardon the expression, about X projects rather than The problem is that people who have a level of knowledge even lower than those who talk [ __ ] believe it and there is a lot of liquidity in the crypto market. Let's take meme coins as an example, shall we? I don't know if there's anyone who strongly believes in meme coins or anything else that they're simply a hyper-speculative asset and are driven by this stuff. Most meme coins when they launch are launched through influencers and that's all there is to it. So I see a lot of people buying, what do I do?

I also buy because I feel part of the group. Or I see a person I have respect for, even if only superficially, because maybe I've been following them on social media for 6 months, but I don't even know them. He does it, I do it too. Human beings are like that, they are stupid by nature, so we must implement strategies to become less stupid when it comes to our money. Okay?

Here's another thing, especially when talking about trading, people often refer to speculation, but trading isn't just speculation, they're two different things, so I wanted to give you the definitions and they're also useful for understanding what kind of investor you are, what kind of trader you are or could be. And even there, self-analysis is essential because I see people who over the years jump from one strategy to another, from one asset to another, first they do multiday, then they do 10-second scalping, then you know I've made too many losses, so I do monthly, then I don't have m I just buy and wait. This stuff here harms you because your confidence in yourself decreases more and more, and also your confidence in the market and in potentially profitable strategies. Okay? So even just figuring out what kind of industry I want to enter with respect to the person I know myself to be is extremely important, but it's the starting point of the investment, it's before deciding what to invest in, you understand?

So maybe write them down, take a picture for timing reasons. I won't go into them all here, but simply put, speculation is much more aggressive, much faster, and uses leverage, giving us much greater market exposure in terms of both profits and losses. Investing is a little more chill, let's say, in that an investment made intelligently gives us the almost guarantee that sooner or later it will turn into a profit. Done intelligently, what do I mean? Don't buy pepper, but if I buy Coca-Cola, okay, I know that even if you maybe give me -3% the day after tomorrow, in 10 years, I will definitely be in profit.

Here you go. I'm talking to you about diversification, not putting all your eggs in one basket. And I know that this is a huge mistake made by all crypto investors because they think that the crypto sector is the coolest of all, that blockchain technology is the coolest of all and therefore traditional markets are no longer worth anything because they are just old junk from banks, investment funds, etc. etc. Well, I agree that blockchain is objectively an innovation and it is objectively an incredible technology with a lot of potential uses, but the fact is that a good investor puts his eggs in all baskets—not just many, but all possible ones, obviously, depending on his capital.

So, first I have to understand what kind of investor I am and figure out how much exposure I want to have with that money, how much risk I want to take, how much profit projection I want to take, what kind of emotional management I want to use, etc. etc. etc. but from there on decide where to allocate. Se io so che sono uno che gli viene la cagarella quando il portafoglio gli fa almeno 30%, io non investirei più di tanto in criptovalute, oggettivamente parlando, perché le bullrun sono belle per tutti, signori, ma quando finiscono i tempi duri iniziano e il 90% dei criptoinvestitori, mi sono guardato le statistiche di recente, fra una bullan e l'altra ha sempre riperso tutto.

So not only did he burn what he earned, but he even got it back and often lost the initial money as well . So either I want to be a crypto investor if I'm full gas on crypto, anyway 20 30 40 50% stable assets, okay? like Bitcoin, Ethereum, which are a bit of collateral rather than a Solana, rather than a Ripple, etc., should be put in the wallet. So when you go looking for super performances, I can assure you that over time, maybe once you'll be lucky, like it was in the example I gave you before, maybe twice, maybe 5 or 10 times, but sooner or later the market will always hit you in the face, because those are the rules of the game.

So it's very important if I have a slightly more aggressive approach, what do I do? I gradually move the profits into something more conservative. I buy a little bar, I buy a piece of Bitcoin, I buy an Ethereum, I buy, I don't know, other things. I buy some blue chips, which are companies that we know are gigantic, like Coca-Cola, like Apple, like Google. they are the companies that practically give us performance guarantees .

And here, as a final point, I bring up what I personally, speaking as Enrico, see as one of the possible solutions which is not a replacement, mind you, but an alternative solution first and foremost because it completely eliminates emotion. Then I know that when we talk about automation, everything and more comes to the investor's mind, so maybe he thinks of the scam bot he got in 2022, he thinks of the Quantum Computer Ponzi scheme where he put the €1000. In crypto, he thinks of , I don't know, the guy with the Lamborghini in Dubai who has the super expert advisor but who burns out every 6 months . I mean, the world of automation is huge, obviously, and just like the crypto world, 90% of the time it's a scam or invalid, so to speak , not to mention bad things. The fact is that if used consciously it gives us very important statistical advantages.

Io non sto parlando, come alcune persone già sanno che magari hanno parlato al nostro stand esclusivamente di avere un software come quelli che abbiamo noi che fa le operazioni al posto tuo, ma io sto parlando anche molto banalmente di avere dei software che fanno anche solo l'analisi al posto tuo, che ti tolgono tempo di analisi a cui tu dai dei check molto veloci con una checklist preimpostata, ne valuti la qualità perché, signori, l'intelligenza artificiale è ancora molto allucinata, quindi non è una garan garanzia se io chiedo a Chat GPT la sua opinione su Solana e mi dice che è super figo. Ok, attenzione a questa cosa qua, però con tutta l'evoluzione degli AI agents, con tutta l'evoluzione delle ottimizzazioni delle varie intelligenze artificiali, ma anche l'interconnessione fra varie intelligenze artificiali, io ho un carissimo amico che fa il programmatore AI, su cui adesso stiamo lavorando a un progetto che che non è solo di investimento, ma ehm da distribuire alle aziende in cui vari modelli di intelligenza artificiale comunicano fra di loro e si danno check, si confrontano e si correggono. So I ask GPT chat what he thinks of Solana. It tells me that Solana has a transaction speed of I don't remember, 0.1.

Gemini analyzes it and says no, it's two and the other reanalyzes it and says yes, that's right, it's two. We confirm and insert it into the parameters. Questa semplice cosa qua va ad ottimizzare tutto il processo di analisi, ma lo potete fare anche voi, eh, nel senso che potete prendere le chat di chat GPT, le buttate su Gemini, le buttate su Perplexity con un altro motore, le buttate, non lo so, su quelle, su Grock, quello che volete e gli chiedete "Ho chiesto questo, c'ha GPT? Mi confermi tutto quanto, mi fai un'analisi approfondita e mi dai un feedback?" Well, one tells you this, one tells you this, one tells you this and you have parameters.

But to do the analysis yourself, how long would it have taken you? Hours, days, weeks? That way you do it in minutes, simply speaking. It's just time for reading and verifying information, you understand? E quindi anche semplicemente per un investitore magari longterm come quello che può essere io compro e lascio là fino alla fine della prossima bull, banalmente parlando, sono estremamente utili, soprattutto in un mercato come questo dove rispetto alla precedente bullrun che i principali player di mercato erano relativamente pochi, adesso fare un portafoglio diversificato fatto bene è difficile perché è pieno zeppo di progetti che sembrano erano validi.

Many are very good, others just seem to be. But if I 'm not a technician and I don't know what kind of underlying infrastructure there is, that is, I go based on YPE, FOMO, the cognitive biases we saw previously, not on the basis of objectivity, but the good investor is the one who bases himself on data, not on what he thinks or feels. Quindi, appunto, per quanto riguarda l'ottica di diversificazione, quello che io personalmente consiglio è non per forza tramite noi, ma andare ad informarvi su quelli che sono dei possibili strumenti di automazione o addirittura se siete dei programmatori createveli ragazzi perché siamo perfettamente in tempo, sia per avere degli strumenti estremamente ottimali e anticipare la massa dei retail, ma sia anche per chi parlo per chi è un programmatore che sono cose che stiamo facendo anche noi, avere degli strumenti che fra 2 3 4 5 anni nel mercato varranno tantissimo perché avremo uno storico, avremo dei back test di analisi, avremo già una valanga di dati, le intelligenze artificiali saranno state ottimizzate, quindi posizionarsi adesso ci dà un vantaggio strategico veramente impressionante. If I speak to the small retail investor right now, do it anyway, but do it for yourself. Maybe not to offer services to third parties, but to improve your performance, to optimize the use of your capital, to reduce risks, perhaps even just—which is no small thing in a market like this—and very simply to diversify even among various markets.

Let me give you an example: we're all crypto investors here. Apart from ourselves, who invests through the Forex market? Currency exchanges. Raise your hand. It is no coincidence that he is on the front line.

Guys, this is important. And I'm not telling you take €10,000 and now that the dollar, I mean do an analysis, if the dollar goes up, then buy dollars instead of euros. I 'm not saying that, but simply even at the volatility level the exchange rate between the euro and the dollar, if it does a lot for me, in the space of a day it makes a 1.5-2% variation, you understand? It's true that it's little and so if I bought it spot I wouldn't do much, but with the use of leverage, having a less volatile asset is much easier to trade and don't see leverage as a penalty, it's just a tool that can be used very simply.

So at that point, I, as an investor, would prefer a less volatile asset, but with a little or more leverage, rather than a more volatile asset where perhaps I only invest spot. So this I think is the last slide. Exact. What is our approach. We've already spoken to a lot of people.

If you'd like to come and learn more, we're at the stand on the left at the entrance. Però quello che noi portiamo alle persone è consapevolezza 360. Ed è per questo che oggi, per quanto potessi portare migliaia di argomenti lato trading, ed è una mia passione, potrei parlare per le prossime 8 ore di trading per quanto mi riguarda, però io ho portato la gestione emotiva, ho portato il danno che noi stessi facciamo a noi stessi, che spesso poi è quello che allontana le persone dal mondo della finanza. But finance is not the enemy. La finanza va solo compresa, molto banalmente e quindi l'educazione è alla base, però bisogna anche saper scegliere dove educarsi, perché vi posso assicurare, io faccio anche l'esempio dei test di stato, per esempio, da consulente finanziario, cioè io me li ricordo il test, mi ricordo che leggevo le pagine e pensavo, ma cioè c'erano leggi, c'erano robe che ci facevano studiare che non esistevano neanche più, per farvi capire.

So even there you have to be very selective from an educational point of view and trust yourself because the gut is often right much more often than the brain, but we just don't listen to it. So I finished, I see they were rushing after me. Thank you. If you'd like, you can scan the QR code on your phone, essentially going to our website, seeing a little about what we do, or booking a consultation and speaking with one of our staff. And thanks again.