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Fincash » Diamond Hands

Diamond Hands

Updated on April 10, 2024 , 720 views

Popularized by WallStreetBets lingo, 'diamond hands' is a term that refers to investors who hold assets for a long period of time. They are focused about investment goals, and despite the headwinds, they hold stocks adamantly. Such investors' hands are termed ‘diamonds’ because they continue to hold the stocks until it becomes like a diamond, meaning higher in value.

Diamond Hands

The term ‘Diamond Hands’ really began to catch on during the Gamestop buying frenzy of 2021.

Diamond hands are usually expressed in emoji as 💎🙌 - a combination of the diamond stone emoji 💎 and the raising hands emoji 🙌.

Diamond Hands Investing

The idiom is particularly used in the context of Investing in stocks or holding cryptocurrencies like Bitcoin. It got more popular with crypto enthusiasts because, in such a Market Volatility asset, diamond hands are a good fit. You won’t bother about the price changes if your primary goal is to hold the position until the goal is achieved despite the potential risks.

Paper Hands Vs Diamond Hands

Diamond hands contrast with ‘paper hands.’ An investor with ‘paper hands’ exits as soon as the price of the stock starts to fall. They don’t have much patience and are likely to engage in Intraday trading for quick gains. On the other hand, diamond hand, investors don’t quickly exit from the position because their goal is to achieve the objective of investment. Also, they have a high-risk tolerance.

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Conclusion

Diamond hand investors have patience, therefore they realize big gains. This strategy goes well for investors with long-term goals. However, it can also work negatively for stubborn investors who refuse to abandon an asset that is likely to lose value in the market.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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