What do buy, hold and sell actually mean?

Buy, hold and sell sound absolute — like a verdict. In reality every rating is an opinion produced by a method, and the same stock can honestly carry all three labels at once depending on who's looking and over what timeframe.

Where ratings come from

• Brokerage analysts rate business prospects over 12 months — earnings, valuation, industry. Their "buy" says nothing about whether the chart favours an entry today.
• Technical systems (like this site's read) rate the chart — trend, momentum, levels. A technical "buy" says the setup is strong now; it knows nothing about the business.
• Quant screens rate statistical factors. Different method, different answer again.

Why the same stock disagrees with itself

How to actually use a rating

Never act on the word; act on the reasons behind it. A useful rating shows its inputs — which signals fired, what levels it's built on, what would change its mind. A rating without reasons is just someone else's mood.

And remember what no rating includes: your situation. Your holding period, tax position, concentration and risk tolerance change the right decision — which is why identical information can correctly produce different actions for different people.

Educational only — not financial advice. This guide explains general concepts for learning purposes and is not a recommendation to buy or sell any security. Always do your own research and consult a licensed financial adviser before investing.

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