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Chapter 26, Part II. Should We Rely on Carry Solely? - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Feb 16, 2012.

  1. Administrator

    Administrator Just Administrator :-)

    Sep 24, 2007
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    Please use this thread for questions, answers, and comments on this lesson.
  2. dkami

    dkami Sergeant

    Apr 13, 2010
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    Thanks Sive for your lesson
    So if I may ask whats your thoughts now in the current climate as we all know with this bubble emerging thanks to Ben bernanke and his printing press and all the troubles in the Euro Zone that's been going on for years now thanks to the willingness of the tax payers bailing out the banksters and the greatest short term risk being Israel and Iran on the verge of war over nuclear weapons not to mention unforeseen disasters like the tsunami in Japan is it wise to carry trade?
    I see AUD/JPY on a monthly chart in a nice true range between 88.84(resistance) and 74.33(support) which is 1451pips is it wise to be carry trading these ranges? or wait until the bubble bursts and take out the support which could be tomorrow or next year or the year after that and start taking positions at next support 59.82 or wait for monthly candle break of resistance before taking longer term trades and taking profit at next resistance 103.35?

    P.S.What ever happened to Giant2 did he go under with the tsunami because of over leveraging or is it just a extended holiday? LOL
    But in all honesty I really hope he comes back as its one thing the FPA is missing carry trade guidance it a no brainer Swap + pip profit

    Thanks again Sive for sharing
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    Hi Dkami,
    heh, pal, you've touched so sophisticated scenarios, so, I suppose that even Mr. Buffet will not answer. ;)
    But, if you let me, I look at carry as long-term perspective, that is based on fundamental approach. Now I like Australia by it's rate, relation to gold and fundamentals (deficit, debt burden, budget income/interest payments etc). From that perspective Australia is one amongst the others (few) countries that gives nice real return on investments. US long time already gives negative real return.
    You apply a bit different approach - combination of pure carry with technical analysis, so it's difficult to advise here. Anyway I will not be surprised if after some years safe haven role will drift in favor of AUD ...
  4. One-fm

    One-fm Private, 1st Class

    Oct 13, 2018
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    Thanks, Sive.

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