When navigating online tradingrecommendations, it's easy to come across information that goes against thegrain of conventional financial wisdom. Some of these bits of advice arequestionable, while others can be straight-up harmful to your financial outcomes.

Octa, a regulated and trusted broker, breaksdown some of the worst advice traders can follow and describes potentialconsequences that can ensue while offering viable counterarguments.

Harmfuladvice #1: forget about brokers' reputation

Imagine a trader who doesn't care whethertheir broker is regulated and trusted, focusing solely on short-term financialgains mentioned in ads. This approach can be rooted in the unwillingness to gointo too much detail when choosing a broker. After all, the difference betweenregulated and unregulated brokers often becomes evident only with time. It'snot always possible to spot a difference from the get-go, especially for theless experienced traders.

In reality, regulation plays a crucial role indefining brokers' reliability. Some unregulated brokers may engage in unethicalor illegal practices, such as unauthorised trading, churning (excessive tradingto generate commissions), or offering fake investment products.

In the long term, a more reasonable approachwould be to choose an experienced and globally regulated broker whosetrustworthiness has been proven by traders' reviews. If a broker meets thestrict criteria of multiple regulatory bodies from various regions, it is muchmore likely to be a safer choice for traders.

Harmfuladvice #2: withdrawals are always easy, don't fret about it

It's only natural for those starting theirtrading journey to look only one step ahead and focus on achieving financialgains first. After all, tapping into a viable source of supplementary income isone of the main reasons why people start trading in the first place.

It may seem that once traders have reachedtheir financial goals, cashing in their profits should not be a problem.However, this is where things can easily go wrong unless you have carefullychosen your broker based on public information about its withdrawals.

By establishing a transparent, user-friendlytransactional mechanism and offering a wide variety of withdrawal options,brokers show a client-oriented approach to business and send a clear message totheir 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-lifetraders' reviews. All Octa's fees and conditions are fully disclosed in thebroker's terms and conditions, creating a reliable trading environment.

Harmfuladvice #3: don't pay attention to trading conditions

At first glance, trading conditions offered bya broker may seem a minor detail that is not worthy of consideration. Afterall, if your strategy is viable and you execute it perfectly time and timeagain, what can go wrong? But it is worth remembering that in trading, gainsand losses are marginal most of the time, and long-term success highly dependson the broker's fees.

When choosing a financial broker, the more youknow, the better. This is especially applicable to trading conditions. Choosinga broker with advantageous conditions, including low spreads, efficientwithdrawals, and transparent fees, may not yield immediate gains, but will havea considerable long-term impact on your outcomes.

When starting trading with a broker, alwaysmake sure to test their advertised trading conditions before fully committingwith your deposits. Only brokers that are fully transparent about their chargesare worth your trust. For example, Octa broker's long and successful trackrecord and lack of hidden fees can be verified through thousands of positiveonline reviews. However, for any trader, the best way is always to test tradingconditions firsthand.

Harmfuladvice #4: in trading, caution is for the weak

For a new trader, it may seem that riskmanagement tools are only applicable if you deal with extra-fast time frames orplace many orders simultaneously. Otherwise, there is no point in wasting yourtime on insignificant details since a couple of high-risk trades will likelydetermine your success.

However, it couldn't be further from thetruth. Stop-loss and take-profit orders are a must for any trader, regardlessof their style and asset preferences. When traders focus on short-term profitsand disregard the strategic aspect of trading, including using risk managementtools, they enter the realm of random outcomes, which doesn't operate in theirfavour.

Ignoring risk management tools and fullytrusting your emotions during the stressful moments of high market volatilityis almost like trying to extinguish fire with gasoline. Trading becomes muchless stressful and more efficient if you approach it with a cool head and useall the tools at your disposal to navigate sudden bursts of volatility.

Conclusion

In trading, following the fundamental rulesfrom step one is essential for long-term success. These rules include choosinga reliable broker, since this is the only way to ensure a smooth tradingexperience overall. By ensuring fast withdrawals and a transparent, clearlycommunicated fee structure, brokers enable their clients to achieve theirfinancial goals—and thus build up their reputation for the long term.

Compliance reminder: trading Contracts forDifference (CFDs) carries a high level of risk and may not be suitable for allinvestors. Emotional trading can increase this risk. Always trade within yourmeans and understand the risks involved.

About Octa

Octa is an international broker that hasbeen providing online trading services worldwide since 2011. It offerscommission-free access to financial markets and various services used byclients from 180 countries who have opened more than 52 million trading accounts.To help its clients reach their investment goals, Octa offers free educationalwebinars, articles, and analytical tools.

Thecompany is involved in a comprehensive network of charitable and humanitarianinitiatives, including the improvement of educational infrastructure andshort-notice relief projects supporting local communities.

Sinceits foundation, Octa has won more than 100 awards, including the 'Most ReliableBroker Global 2024' award from Global Forex Awards and the 'Best Mobile TradingPlatform 2024' award from Global Brand Magazine.