Hi,

Every small cap trader knows that some years are better than others. I transitioned to forex a while ago. Are there also years with less opportunities/lower returns in forex just like in the stock market? My impression so far is that forex may not encounter "bad years" to the same degree as the stock market does. Any thoughts?

Much appreciated,
Patrick

I think years when the Fed changes interest rates are good for higher volatility in the forex market. The war in Ukraine affected the euro also.

patrick88 

Hi, Every small cap trader knows that some years are better than others. I transitioned to forex a while ago. Are there also years with less opportunities/lower returns in forex just like in the stock market? My impression so far is that forex may not encounter "bad years" to the same degree as the stock market does. Any thoughts? Much appreciated, Patrick

Low volatility periods hit all markets. Trading gets much tougher when vol is low. So yes, in forex and futures and even crypto, when vol goes down so do opportunities.

kevinkdog 

Low volatility periods hit all markets. Trading gets much tougher when vol is low. So yes, in forex and futures and even crypto, when vol goes down so do opportunities.

Which recent years in forex were considered bad years?

patrick88 

Which recent years in forex were considered bad years?

Depends on the pair, and also isn't necessarily a year, could be a few months, could be a few years. Just look at something like Average True Range over time, and when you see it at multi-year lows, that was likely a poorer time for trading in general.