It’s hard to be an investor, saver, or crypto speculator without hearing the term “Diamond Hands.” I just want to cover this term quickly.
What Does Diamond Hands Mean?
Diamond hands are jargon/slang for an investor holding onto extremely volatile investments during periods of poor performance.
When questioned by other investors, investors often proclaim themselves to have Diamond hands to justify continuing to hold a sinking value investment.
Often, the YOLO crowd on Reddit(r/WallStreetBets) often brag about their Diamond Hands, weathering tough times in an investment that later turns into advantageous decisions.
Are Diamond Hands Bad or Good?
It depends and is often based on hindsight.
Diamond Hands is good when you hold on to a sound investment during periods of poor performance; for most of us who continuously dollar cost average long-term into good index funds for long-term goals such as retirement, having diamond hands is a good attribute.
Diamond Hands are bad when you hold onto obvious bad stocks without evidence of changing course.
For example, how many of us remember people holding on to Enron, World Comm, or even Cisco from its peak? We knew the markets were changing, bankruptcy was expected, and bubbles busted. Yet, many of us have or still do hold on to certain investments, hoping and wishing for their return.
When you should cut your losses, having Diamond Hands can be harmful.
What Is The Opposite Of Diamond Hands?
 Myself with an interesting Bull Sculpture. Notice: No Lambo’s. :/ | Hi I’m Tom, A Blogger And A PIG Farmer. PIG Farmer as in I grow Passive Income Generators(PIG’s). I’ve been playing with stocks, mutual funds, and options for decades, as well as always working on my side hustle stacks. Unlike what you read online, I’ve yet to find a way to get rich quickly. Get Rich Quick isn’t happening for me. My journey has been long and continues. I hope to have so many PIGs I can stop working at my current job and volunteer as a medical worker overseas. Still waiting, but getting there. I still am a family man, and while on this Journey of Growing PIGs. I wanted to share my adventures(ups and downs), hoping you will contribute with your feedback and comments. Fun Fact: In my spare time, I am a Band-Dad! |