Let Waiting Build You Wealth

At the beginning of every week, I look at the of my favorite carry trade pair, the AUD/JPY.?

It’s been lounging for several months at the bottom of aupward trending channel that extends back to 2002.

Before opening or adding to a long position, we want to seehow it behaves for the next few weeks. For instance, the action of this week illustrates three important points why.1. We need to wait for confirmation that the pair is going to act the way wethink it’s going to act. We expect AUD/JPY to continue to trend higher into the channel on the long term(monthly) chart. However, this week it continued to follow the top of thedownward trending channel on .

Until we see a break out of this intermediate trend, we takeno action.

2. Failing to be patient costs you money!Had you gone long on Monday or Tuesday - May 5th or 6th - you would be under by$200-300 bucks for each mini contract if you were still in today.?

3. With this pair and any carry trade pair your losses aremitigated by the daily interest.Even if you were long , you'd have picked up interest in youraccount. Triple on Wednesday.

And if you are wise, you have but a small position relativeto your account size. So, you may actually want to add to your position, earlynext week. But keep it tiny! There could still be some downside in the nearterm.The lesson is patience, grasshopper, patience!