What are Diamond Hands?
Definition: Diamond Hands
Diamond Hands means to keep on holding a stock with disregard to current market conditions.
This is a Wall Street Bets mainstay. The phrase is found frequently in the comments section, especially when a stock is extremely volatile. It rose to popularity during the GameStop (GME) reddit revolution.
Retail investors were drawn towards the potential of infinite wealth while GME stock was thought to be positioned well for a short squeeze. (Still may happen). Message boards on Reddit were aflame with other users calling for everyone to purchase shares and hold them with diamond hands.
As the stock took a meteoric rise towards the moon, people held onto their stock. Many broke their promise to be diamond hands and converted to paper hands by selling their shares of GameStop as it was rapidly declining in value.
The term diamond hands can be broken down into its individual parts. Diamonds are known to be the hardest substance found on Earth. Hands are extremities that many mammals poses and are used for holding.
When used together, the definition becomes clear. The intent is to hold your shares with the strength of a diamond. If the stock is up five, ten, or 50 percent, keep holding it. It may go higher. Conversely if the stock is down five, ten or 50 percent and you believe it will rebound. Keep holding it until you get through this rough patch. Hold it with the conviction of a diamond.
The phrase can also be expressed as a simple combination of Emojis. However it can also be expressed as any other different combination of the diamond and any hand Emoji. The most traditional use is listed below.
“Remember everyone, diamond hands, this stock is going to the moon!”