Diamond hands to the moon
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Its subreddit members tend to invest primarily in high-risk stocks. Tip: The subreddit is known for popularizing several slang terms and stock memes including 'stonks' to refer to stocks, 'to the moon' for their desired profit target, and 'tendies' to refer to investments gains - a term that they illustrate with emojis of drumsticks. It is used primarily to talk about those investing in highly volatile investments like meme stocks and cryptocurrencies. The term diamond hands is believed to have been coined on Reddit in the r/WallStreetBets subreddit. Their low-risk tolerance means that they miss out on building long-term value by buying and holding securities.
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Paper hands might avoid losses, but they miss out on opportunities when stocks rebound and pay additional transaction fees because they're always entering and exiting new positions. Paper hands investors are investors who are afraid of portfolio losses and will sell a stock even if it has a slight price decrease.
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These investors might outperform the market if their investment eventually increases in value, however, they face the possibility of losing a significant amount of their investment if it doesn't bounce back. Diamond hands are investors who follow the adage 'buy and hold' to the extreme. 'Diamond hands' refers to someone who is resolved when it comes to holding onto stock or other investments. Paper Handsĭiamond hands and paper hands are opposite types of investors. Indeed, market fluctuations don't deter a diamond hands investor, who might hold their long bet no matter how low the value might go. Takeaway: Diamonds are created in high temperature and high-pressure environments and someone who has 'diamond hands' can withstand extreme market volatility. Since investors are often said to 'hold' onto an investment or security, calling someone 'diamond hands' means that the person in question has a hardened resolve to hold onto stocks, similar to a diamond's hard nature. It can also be used negatively to refer to an investor who stubbornly holds onto an investment that has lost value and is unlikely to increase in value in the future. It can be used as a compliment to refer to someone who patiently holds onto their investment and waits for it to increase in value or who continues holding an investment that has increased significantly. What Does 'Diamond Hands' Mean?Ī diamond hands investor typically refers to a person who doesn't panic sell if their investment decreases in value, although it's occasionally also used to refer to an investor who holds if their investment increases significantly in value. 'Diamond hands' is a term that's often used to describe an investor's stubbornness or resolve and first gained prominence in online investing forums. Boonyakiat Chaloemchavalid/iStock via Getty Images