When to Sell Your Stocks?

By Steve Reitmeister, Editor-in-Chief, WallStreetZen
February 21, 2025 9:12 PM UTC
When to Sell Your Stocks?

The short story is that the key to knowing when to sell a stock is to track the daily changes of the Zen Ratings in our free Watchlist feature.  

That is why you should set up your Watchlist Now > 

Here is the more complete answer to when to sell your stocks…

By now you are becoming more familiar with our proven Zen Ratings model for selecting the best stocks. 

In total it analyzes 115 different factors to buy a stock, then simplifies it into an A to F ratings model. 

Your goal should be to own as many A rated stocks as possible given the 3 to 1 outperformance over the S&P 500 going back to 2003. 

Now it begs the question…When is it time to sell?

There are 2 different answers to that question depending on whether you are a short term trader or long term investor. 

Selling for Short Term Traders (6 month or shorter time horizon)

  • Buy A rated stocks
  • Hold for minimum of 1 month
  • Sell when fall to B or below
  • Rotate money into new A rated stocks

Why hold for a minimum of 1 month? 

Because the ratings model is updated 5 days a week with the freshest data. It is not unusual for a company to slip out of the A range for a day or two and then pop right back up to A. Thus, selling the second it becomes a B will lead to unnecessary over-trading of the account.

Plus the +32.52% average annual return for A rated stocks is based on holding for a minimum of 4 weeks.   

Selling for Long Term Investors (6+ month time horizon)

  • Buy A rated stocks
  • Hold for minimum of 1 month
  • Sell when fall to C or below
  • Rotate money into new A rated stocks

Why hold a B rated stock? 

Because they are still impressive outperformers in the top 20% of all stocks analyzed by the Zen Ratings. 

So to squeeze out the maximum long term gain it is best to hold when still an attractive B rated stock. But once it becomes a C it's time to sell in order to find a new A rated position with vastly better upside potential. 

Next Step = Set Up Your Watchlist!

This is the easiest way to monitor the daily changes in the Zen Ratings for your stocks. 

It takes just a minute every day to check in and see if any of your positions have slipped to C rating or below alerting you when to lock in profits…and to avoid any unnecessary losses in your portfolio. 

Taking this next step is a must for anyone trying to unlock all the extra alpha inside the Zen Ratings model.

The watchlist is a free feature of the site, but is personalized to you. 

Just click the link below to create your free member account now and then you can start tracking your stocks with the Zen Ratings.

Create Account to Start Your Watchlist > 

p.s. Our watchlists also share all the Wall Street analyst action on your stocks. Upgrades, downgrades and changes in target price. Please set up your watchlist now to get this vital info. 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor-in-Chief of WallStreetZen

What to Do Next?

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WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.