Have you ever heard about King Kong syndrome in trading before? In forex, you are dealing with opportunities. Nothing is certain when predicting price movements on this market. 

You have a chance to win, but at the same time, you can also lose. You may feel that luck will be on your side when trading everyday. However, beware not to overdo it. Why? 

This can be detrimental to yourself. If from the beginning you have been overconfident to win, then you will feel severe stress when it turns out to be a loss.

The level of stress you experience is certainly greater when compared to when you are not overconfident. This condition is one of the symptoms of King Kong syndrome in forex trading. 

What Is King Kong Syndrome? 

It begins when a trader feels victorious when he makes a profit. The luck continued until several subsequent trades. Well, this condition finally makes them feel overconfident. 

They assume that they will always make profits continuously, without paying attention to the opportunity for loss in trading. This excessive self-confidence is called King Kong syndrome. 

This condition is dominated by two types of traits, namely fear of missing out on profit and greed. In most cases, this overconfident situation affects novice traders. 

It is because, they do not have enough knowledge in trading. For example, they are overconfident to place very large lots without regard to the risk factors. There are also some who use too much leverage. 

Who is Easily Trapped on this Situation? 

It is Not only beginner traders, every people can get caught up in King Kong syndrome. Those who start to feel on top after winning too often unexpectedly and think that trading is easy, are potential sufferers.

A study revealed that male traders tend to feel more overconfident than female. This condition is also supported by data showing that men are 45 percent more active in trading than women. 

That percentage is dominated by male traders who are single. Usually, they have more time and energy to do this activity, even every single day. 

Causes of King Kong Syndrome

Too much information can also be a contributing factor to the occurrence of this syndrome. There are studies that state: the more information absorbed, the higher the level of confidence of a trader in predicting outcomes. 

In fact, not all information is related to what is needed when trading. If so, the large amount of information actually makes someone confused and wrong in predicting the results.

Another factor is the labile emotions experienced by novice traders. Without making any preparations, beginners are often stuck with the lure of making quick profits. 

In addition, looking for sensations can also be a contributing factor to a trader to get King Kong syndrome. They are so eager to show off trading success that they pursue unconfirmed opportunities without actually taking into account the other scenario.

How to Prevent It

Now after you know about this situation, it better to prevent yourself from it. One of the ways is by having a proper trading plan. It is related to many theories such as risk management, etc. 

Besides that, you should use a service from the best forex broker only. They usually offer a good support and complete services for traders. This will be good for your emotion. 

Didimax forex broker must be your partner for this case. It is a legal platform which is trusted by thousand members in the world. It has a low-spread and competitive price. 

You can start even from a small capital. Besides that, the withdrawal process is quick and 100% safe. It is supported by the responsive customer services who are ready to help you if it is needed. 

So, joining Didimax is a smart step to gain more profit. Come and register now if you want to avoid this King Kong syndrome effectively.