Nov '25 (edited) • General discussion
No edge in Forex
Why Trading Forex Isn’t a Great Idea
A lot of people get drawn into forex trading because it looks simple
“just trade currencies, they move every day!”
But here’s the reality: forex is the largest, most liquid, and most efficient market on the planet.
EFFICIENCY MEANS NO EDGE
Every major bank, hedge fund, and central institution is involved. The daily volume exceeds $7 trillion, and almost all of that is dominated by players with massive technological and informational advantages. You’re competing against entities that literally move the market...not retail traders like us.
That means there’s no real edge for the average trader. The market is so efficient that price instantly reflects all available information. Even if you come up with a system that works for a short time, it tends to fade because any inefficiency gets arbitraged away almost immediately.
In simpler terms:
- You can’t out-analyze a market that’s already fully priced in.
- You can’t out-speed institutions running algorithms on millisecond execution.
- You can’t out-leverage a product designed to bleed small traders.
So while forex may look exciting, it’s a trap for most retail traders. The volatility is limited, spreads are tight, and brokers often make more from your losses than your wins.
If you want to trade actively and actually have a measurable edge, crypto or individual stocks offer more opportunity. They’re less efficient, more volatile, and move based on sentiment and liquidity…things you can actually read, react to, and capitalize on.
Bottom line:Forex isn’t “bad”.. it’s just too good at being efficient. And in trading, efficiency kills opportunity.
PS: Markets went down big time last night. So sentiment is on the edge
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No edge in Forex
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