I’m a big fan of creating multiple income streams. And anything you do differently on a separate and independent trading account can be considered a new income stream.
So I’m happy to introduce the addition of a new income stream to PMTW Full Access Pass… FSBO Single Target Signals.
FSBO Single Target Signals are the exact same FSBO Forex Signals traded as a portfolio with a single target. All signals for all currency pairs are traded on the same account and we are not going to take partial profits with these trades.
Let’s dive a little deeper into why I’m offering this version of the FSBO Forex Signals, and get into the specifics of the trading.
How We Trade FSBO
Partial Profits Signals
As you know, I am a firm believer of using a Single Focus approach to trading Forex. Basically, I like to treat each currency pair as a separate and independent income stream and trade EACH currency pair on a dedicated account.
The benefit of this is I can focus on the best currency pairs for my strategy and use higher risk per trade since I am only trading one currency pair.
This is how I trade FSBO Partial Profit Signals. Each currency pair is traded on a separate account with 5% risk per trade. Furthermore, I knew running a Forex signals service would attract many beginner traders. For this reason, we are using a Partial Profit trade management strategy to reduce the stress of trading.
Basically, at a point in the trade, we take 50% of our position off the trade. This allows us to bank some profit on the trade on smaller moves. Once there is some profit in your account, it is easier to stick with the trading because the trade is already a winner.
2 Main Differences Between FSBO Partial Profit Signals &
FSBO Single Target Signals
There are two major differences between FSBO Partial Profit Signals and FSBO Single Target Signals to keep in mind…
Difference #1: I’m going to be placing these trades on ONE account. Instead of using a separate account for each currency pair and treating each account as an independent income source, I’ll be trading ALL the currency pairs on one account as a portfolio.
Difference #2: The most obvious difference is there is only going to be one target for the trade and we will NOT be taking partial profits along the way.
SIDEBAR: One of the reasons I am trading these signals as a portfolio is because I believe many subscribers are NOT using my Signal Focus approach. Therefore, I wanted to provide an example of how I would take multiple trades on the same account.
Due to these differences, there are some changes to how we trade the FSBO Single Target Signals.
Main Changes To How We Trade
FSBO Single Target Signals
Whenever you make changes to the way you trade, even small changes, you need to pay attention to how the changes impact your money management and the emotional element of trading.
We want to make sure the changes do not make our trading too risky or difficult to trade on a live account with real money at risk.
Change #1: 2% Per Trade
Since I am placing multiple trades on one account, I have to pay attention to the overall risk of the account.
The partial profits accounts are traded as Single Focus accounts where I am only placing trades on one currency pair per account. Therefore, I am using 5% risk per trade… meaning a maximum account risk of 5%.
However, since I am potentially placing 4 trades on the signal target account, using 5% per trade would be too high (20% of my account would be at risk at any given time). Therefore, I am only using 2% of my account per trade (maximum 8% risk on the account overall).
Risk Per Trade = 2%
It is important to reduce the risk per trade when you increase the number of trades you are taking on the account.
Change #2: Risk To Reward Targets Of 1:2
The major emotional challenge when trading one target is when you are in a trade and it goes into profit a good bit… but then the market reverses and you get out of the trade with no profit or very little profit.
You watched all the profits on the trade disappear and you got very little reward out of it… which can be very challenging on an emotional level.
To combat this scenario, we are shortening the risk to reward ratio per trade. This way it is more likely our target gets hit before the market retraces and eats up our potential profits.
So, instead of risk reward targets as high as 1:5 or 1:3, all trades have a risk reward target of 1:2. (This means the target for every trade will be 2 TIMES the initial stop loss value).
Risk To Reward: 1:2
It is important to take steps to reduce the emotional impact of trading as much as possible.
How FSBO Single Target Signals
Are Delivered And Traded
FSBO Single Target Signals are delivered in the exact same Forex signals email subscribers receive between 6 PM and 6:20 PM New York Time. There will be an indication if there is anything to do for the day, and a link to a snapshot of my charts so you can see exactly what is happening.
If there is anything to do, the instructions are written directly on the snapshot.
To make the trading of the signals easier, I provide subscribers with BUY & SELL SCRIPTS (2%) and Presets for the Forex Trading Troll they can download in the Trading Tools section. There is also a Cheat Sheet that explains the trade management levels (when we are moving our stop loss and to where).
Therefore, if you are trading the FSBO Single Target Signals, you get the email at trading time and if there is a trade you can place it using the Scripts provided and set up the trade management to occur on autopilot using the Forex Trading Troll.
Then you simply wait until the next email to see if there is anything additional to do.
My Exact Trade Plan
For This Account
>Currency Pairs Traded: GBPJPY, GBPUSD, GBPAUD and EURJPY
>Risk Per Trade: 2% per trade
>Risk To Reward: 1:2
>Location: My VPS (Virtual Private Server)
>Trade Placement: BUY & SELL Scripts (2%)
>Trade Management Tool: Forex Trading Troll with PortfolioST Presets
Here are some other details on how I am trading this account:
>Account Base Currency: Ethereum
As you are probably aware, I like to grow my Cryptocurrency through trading. I have funded this account in Ethereum, so any profits generated from this account will be in Ethereum.
Therefore, if the price of Ethereum continues to grow over time, I will have more of it, and exponentially increase my profits. This is a win-win situation.
Training Wheels Protocol: Whenever I have a losing trade, I’ll replenish my account by adding funds in the same amount as the loss.
Periodic Additions: I’ll be making additions to the account when I can over time to increase the account balance and maximize the power of compounding.
If you are unfamiliar with why I am using the Training Wheels Protocol and adding to my accounts, read this post: 3 Forex Trading Hacks To Boost Profitability And Shorten The Path To Achieving Your Financial Goals
Now you know exactly how I am trading the FSBO Single Target Signals.
FSBO Single Target Signals are now a part of PMTW Full Access Pass… giving subscribers one more way to put money to work with high profit potential.
And that is exactly how I want you to look at this addition… as ANOTHER income stream you can use to accumulate wealth faster than other investment opportunities.
I believe in creating multiple income streams. This means I don’t try to figure out what way of trading (partial profit or single target) is the ABSOLUTE best and most profitable.
The truth is, sometimes one way will be better than the other.
My goal is to trade EACH account in a way that is profitable over the long term. Each account is a separate and independent income stream. The more the better.
To Your Wealth,