lowtrade, I have been testing your "Best of Bread" strategy on a stock simulator. I bought Dollar General (DG) because at the time it met the requirements. Then a few days later 3M Co (MMM) met the requirements because Conglomerates became the best preforming sector in the past year.
I bought shares of DG on 11/14/13 at $59.07. I have a personal exit strategy that if the PPS drops 4% below entry price, then I sell. On 12/02/13 I sold DG because the PPS was at $56.52 which is 4.5% below entry price. I do this with any position to keep myself from emotionally holding a losing stock.
Today the DG's PPS is at $61.08. Which is 3.4% higher than the entry price and almost 8% higher than what I sold it at. I know you said that this strategy is long-term. Though would you suggest that I leave myself a little more wiggle room when using this strategy, say 8% sell below entry PPS? I have personally never had to use this exit strategy for any stock that I hold in a real account thankfully.
What did I do wrong here, please offer some insight?
Thanks, Gulley
