‘Diamond palms’ is a time period cast within the gauntlet of Reddit’s r/WallStreetBets neighborhood. Merchants utilizing the social media platform got here up with the distinctive phrase — certainly one of many — and it merely caught on, particularly through the meme stock craze that haunted the market in January 2021.
What precisely does diamond palms imply for shares?
Generally depicted in its emoji kind (see under), ‘diamond palms’ refers to somebody who has a high-risk tolerance for top volatility shares or belongings that they personal.
They don’t cave underneath stress and promote their shares, basically.
Is there extra to diamond palms?
Nicely, aside from the literal rationalization of why it’s known as diamond palms — as a result of they proceed holding till the inventory turns into beneficial, like a diamond — there’s not a lot else to say.
The diamond represents the unyielding power of the investor holding their risky asset. Though, a damaging definition may consult with the hard-headed stubbornness of the identical investor for not letting go of an asset regardless of its falling worth.
There’s a safer technique to make investments although…
The unlucky, and infrequently unseen, facet of this type of retail investing primarily based on Reddit developments, meme shares, short-squeezes, and all-around ‘hype’, is that more often than not, the dealer loses all of their cash.