Basically, when an initial foray is in-profit, I'm ready to put in more when the trend seems apparent and things are acting rationally. So, after a few ups and downs, perhaps within an up trend, I could have accumulated several slightly profitable positions.
If this continues for a while, it's easy to get a large portion of your net asset value into a situation where tiny profits are locked in (stop losses set above the entry point). Then, if the market doesn't drop low enough to take you out, or perhaps a news event occurs in your favor, you can grab a large profit over the next hours or days.
In any case, I like to do this with AUDJPY, buying in during an uptrend, willing to let some carry positions accumulate until the market decides to either reward me or close me out because of my protective stop losses.
I am thinking of looking at some other currency pairs. The carry pairs seem to be closely driven by the stock markets, and hence have an awful lot of volatility, whereas some other pairs might be a bit more manageable.
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