A trader explains why they avoid forex despite its efficiency. Banks dominate the market, keeping daily moves to 1-2%, while stocks and futures swing 3-4% or more on news and catalysts, offering better opportunities for profit.
Why do I stick with stocks and futures and not forex? Because stocks are a lot more inefficient than futures and forex. If you look at forex, forex is going to move like maybe 1 to 2% every day. When you look at futures, on a good day, if there is like a tariff news going on or something, 3 to 4%. If there's like a war going on or something, then we are going to see a lot of volatility here in the forex market. But if you look at futures, 20% drop, 20% push towards the upside. If you look at stocks, stocks are more susceptible to news, and that's why they're inefficient. These are the efficient market, like forex Forex is the most efficient market because it's controlled by the banks all over the world, because banks are making or losing money on the foreign exchange because of the Forex market. So it's going to be very efficient. It's only going to move 1 or 2%. Imagine like Forex moving 15% in one day. The banks are going to go bankrupt, the economy is going to be unstable. If Tesla moves like 20-30%, that doesn't affect the overall global economy.
