We bought this thing, so when do we sell it?

We're talking exit strategy

We bought Infosys at $14.45 and now it is currently at $14.36, so we've only lost about $2.50 on it. Before we say oops, we have to remember that we've only had it for about a week. Hopefully with some more time, this strategy will bear out better results for this. The next question, is to probably set some sort of automated out both on the high and low end. This would allow us to cut our losses, which is a first for us.

Sorry EWZ...that's the prime example of inaction biting us in the butt.

So when do we get out? If it gains 4%, that would cover our trading costs. Is 10% enough? Sure 10% would be great. As far as a loss point, maybe 10%? It's kind of arbitrary, but at this point it seems like we have to recognize that we don't have a really great handle on how this works, so maybe having something automated is best to give us a direction. We can always revise our strategy as things go along. After all, learning is the primary goal here for us.

We were able to set a three month automatic buy/sell trigger, so we can set it and forget it for a while. Scottrade has all sorts of nifty options for doing this:

We purchased this on the hopes that it was a short term panic. If that's the case, the price will bounce back. However, if it is a more long-term adjustment, it will be going down. We'll see.

Profit!