When navigating online trading
recommendations, it’s easy to come across information that goes against the
grain of conventional financial wisdom. Some of these bits of advice are
questionable, while others can be straight-up harmful to your financial outcomes.
Octa, a regulated and trusted broker, breaks
down some of the worst advice traders can follow and describes potential
consequences that can ensue while offering viable counterarguments.
Harmful
advice #1: forget about brokers’ reputation
Imagine a trader who doesn’t care whether
their broker is regulated and trusted, focusing solely on short-term financial
gains mentioned in ads. This approach can be rooted in the unwillingness to go
into too much detail when choosing a broker. After all, the difference between
regulated and unregulated brokers often becomes evident only with time. It’s
not always possible to spot a difference from the get-go, especially for the
less experienced traders.
In reality, regulation plays a crucial role in
defining brokers’ reliability. Some unregulated brokers may engage in unethical
or illegal practices, such as unauthorised trading, churning (excessive trading
to generate commissions), or offering fake investment products.
In the long term, a more reasonable approach
would be to choose an experienced and globally regulated broker whose
trustworthiness has been proven by traders’ reviews. If a broker meets the
strict criteria of multiple regulatory bodies from various regions, it is much
more likely to be a safer choice for traders.
Harmful
advice #2: withdrawals are always easy, don’t fret about it
It’s only natural for those starting their
trading journey to look only one step ahead and focus on achieving financial
gains first. After all, tapping into a viable source of supplementary income is
one of the main reasons why people start trading in the first place.
It may seem that once traders have reached
their financial goals, cashing in their profits should not be a problem.
However, this is where things can easily go wrong unless you have carefully
chosen your broker based on public information about its withdrawals.
By establishing a transparent, user-friendly
transactional mechanism and offering a wide variety of withdrawal options,
brokers show a client-oriented approach to business and send a clear message to
their clients about their reliability.
To keep abreast with the industry benchmarks,
Octa, a globally recognised broker with more than 14 years of experience,
offers a fast and efficient withdrawal procedure confirmed by real-life
traders’ reviews. All Octa’s fees and conditions are fully disclosed in the
broker’s terms and conditions, creating a reliable trading environment.
Harmful
advice #3: don’t pay attention to trading conditions
At first glance, trading conditions offered by
a broker may seem a minor detail that is not worthy of consideration. After
all, if your strategy is viable and you execute it perfectly time and time
again, what can go wrong? But it is worth remembering that in trading, gains
and losses are marginal most of the time, and long-term success highly depends
on the broker’s fees.
When choosing a financial broker, the more you
know, the better. This is especially applicable to trading conditions. Choosing
a broker with advantageous conditions, including low spreads, efficient
withdrawals, and transparent fees, may not yield immediate gains, but will have
a considerable long-term impact on your outcomes.
When starting trading with a broker, always
make sure to test their advertised trading conditions before fully committing
with your deposits. Only brokers that are fully transparent about their charges
are worth your trust. For example, Octa broker’s long and successful track
record and lack of hidden fees can be verified through thousands of positive
online reviews. However, for any trader, the best way is always to test trading
conditions firsthand.
Harmful
advice #4: in trading, caution is for the weak
For a new trader, it may seem that risk
management tools are only applicable if you deal with extra-fast time frames or
place many orders simultaneously. Otherwise, there is no point in wasting your
time on insignificant details since a couple of high-risk trades will likely
determine your success.
However, it couldn’t be further from the
truth. Stop-loss and take-profit orders are a must for any trader, regardless
of their style and asset preferences. When traders focus on short-term profits
and disregard the strategic aspect of trading, including using risk management
tools, they enter the realm of random outcomes, which doesn’t operate in their
favour.
Ignoring risk management tools and fully
trusting your emotions during the stressful moments of high market volatility
is almost like trying to extinguish fire with gasoline. Trading becomes much
less stressful and more efficient if you approach it with a cool head and use
all the tools at your disposal to navigate sudden bursts of volatility.
Conclusion
In trading, following the fundamental rules
from step one is essential for long-term success. These rules include choosing
a reliable broker, since this is the only way to ensure a smooth trading
experience overall. By ensuring fast withdrawals and a transparent, clearly
communicated fee structure, brokers enable their clients to achieve their
financial goals—and thus build up their reputation for the long term.
Compliance reminder: trading Contracts for
Difference (CFDs) carries a high level of risk and may not be suitable for all
investors. Emotional trading can increase this risk. Always trade within your
means and understand the risks involved.
About Octa
Octa is an international broker that has
been providing online trading services worldwide since 2011. It offers
commission-free access to financial markets and various services used by
clients from 180 countries who have opened more than 52 million trading accounts.
To help its clients reach their investment goals, Octa offers free educational
webinars, articles, and analytical tools.
The
company is involved in a comprehensive network of charitable and humanitarian
initiatives, including the improvement of educational infrastructure and
short-notice relief projects supporting local communities.
Since
its foundation, Octa has won more than 100 awards, including the ‘Most Reliable
Broker Global 2024’ award from Global Forex Awards and the ‘Best Mobile Trading
Platform 2024’ award from Global Brand Magazine.
