What does it mean in stock market forums when someone says paper hands?
Definition: Paper Hands
A term That describes an investor that sells at the slightest profit, or at the slightest loss out of fear. Paper hands is the opposite of diamond hands.
Paper hands is another invention of online trading forums. It became a term to contrast diamond hands.
Paper is a soft material that can be easily destroyed through physical force. Hands in this case represents owning a stock. So someone with paper hands sells or gets out of a position at the first sign of positive or negative movement.
Fear is a primary psychological driver in investors with paper hands. Stock prices fluctuate on a daily basis and go up and down. Someone with paper hands is unable to address the stress of seeing their account go slightly red or green.
Maybe they are not cut out to trade on the stock market. Or maybe people are to hard on them. Paper hands is often used as an insult to others for taking profits or taking loses.
“Price is down. Hype is down. Restrictions are down. Paper hands & doubters have left. Diamond hands only.”