FOREX Advisory Services

Almost every advisory newsletter today is available online. Gone forever are the glory days of the hardcopy Harry Schultz Letter, Dines Letter, Holt Advisory, Perry Wysong's Insider, and Myer's Energy and Finance. Advisory services are divided into two types: General or long-term advice and short-term signal services. If you intend to be an independent trader, signal services are not a good idea; they will probably just confuse you. The exception would be a signal service that uses a trading method similar to yours and can be used as a check on your own analysis of the markets.

No signal services are reviewed here. The best resource is Forex Peace Army. General or long-term advisory services are another matter. If they are properly integrated into your own methodology, they can offer both perspective and a check on your own work. But you need to keep them in their place and not use them as a substitute for independent analysis of the FOREX markets. Tip: In FOREX the long term is best used as a guide for prevailing trends. Because of the leverage factor, only well-capitalized position traders can use it to actually trade. Holding through a 300-to-500 pip countermove is beyond most small traders' means.

If you plan to be a self-directed trader, consider using two advisory services: one of them to complement your own analysis and one of them out of the box to give you a fresh perspective. I use two services to confirm my own work but rarely follow the trade recommendations unless they also match up with my own thinking. I do consider them into my analysis if I am strongly bullish (for example) and they are strongly bearish. But my own work always makes the final call.
By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2020. Content published with author's permission.

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