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Trading Fundamentals

Diamond Hands

Diamond hands refers to holding an asset through extreme volatility without selling, no matter how much the price drops or how tempting it is to take profits.

Understanding the Concept

Diamond hands became a meme during GameStop and crypto mania. It's partly mindset, partly strategy. The case for: emotional selling at the bottom destroys returns. The best days in the market follow the worst days. Panic sellers miss recoveries. The case against: holding losing positions forever is denial, not strength. "Diamond hands" shouldn't mean ignoring fundamentals or holding garbage to zero. Smart diamond hands means conviction-based holding with clear theses. Dumb diamond hands means bag-holding because you refuse to admit you're wrong. Know the difference.

Real-World Example

You bought Solana at $200, watched it crash to $8 during the bear market, and held through the pain. When SOL recovered to $150, your diamond hands paid off—weak hands who sold at $20 missed the recovery.

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