What Does 'Diamond Hands' Mean?

If recent phrases from Fintwit and Reddit about investing have confused you, we've got you covered; here's what 'diamond hands' means.
Aug. 26, 2022
Unlock Free Stock Insights + 50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

'Diamond hands' is a term forged in the gauntlet of Reddit's r/WallStreetBets community. Traders using the social media platform came up with the unique phrase -- one of many -- and it simply caught on, especially during the meme stock craze that haunted the market in January 2021. 

What exactly does diamond hands mean for stocks?

Commonly depicted in its emoji form (see above), 'diamond hands' refers to someone who has a high-risk tolerance for high volatility stocks or assets that they own.

They don't cave under pressure and sell their stocks, essentially.

Is there more to diamond hands?

Well, other than the literal explanation of why it's called diamond hands -- because they continue holding until the stock becomes valuable, like a diamond -- there's not much else to say. 

The diamond represents the unyielding strength of the investor holding their volatile asset. However, a negative definition might refer to the hard-headed stubbornness of the same investor for not letting go of an asset despite its falling value. 

Want to learn more investing terms? Read all about 'Tendies' here. 

Interested in the Reddit IPO? Get our take here. 

There is a safer way to invest though...

The unfortunate, and often unseen, side of this kind of retail investing based on Reddit trends, meme stocks,  short-squeezes, and all-around 'hype', is that most of the time, the trader loses all of their money.

Unlock Free Stock Insights +50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.

Services

Podcast

Social

Company

Support

Resources

This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.