WallStreetBets (WSB) is a popular subreddit dedicated to stock and options trading, with a community that has its own distinct culture and language. Over the past few years, this subreddit has gained significant attention due to its role in influencing stock prices and the broader market. For investors unfamiliar with the WSB lingo, it can be a bit overwhelming. This guide aims to demystify some of the most common terms and phrases used within the WSB community.
Diamond Hands: An investor with "diamond hands" is someone who holds onto a stock or asset, even in the face of significant price drops or volatility. They do not sell out of fear. Example: "Despite the stock tanking by 15%, Jake had diamond hands and didn't sell a single share."
Paper Hands: The opposite of diamond hands. An investor with "paper hands" will sell their holdings at the first sign of trouble or decline in value. Example: "Sara had paper hands and sold her stocks the moment they dipped, only to see them rebound the next day."
Tendies: Profits or gains from an investment. Derived from the term "chicken tenders." Example: "After that stock soared, I cashed in my tendies and took a vacation."
Yolo: "You Only Live Once." Refers to making a high-risk, high-reward bet or investment. Example: "I just put half my savings into this speculative stock. YOLO!"
DD: "Due Diligence." Detailed research and analysis of a company or stock. Example: "Before I invest, I always do my DD to ensure I understand the risks."
Mooning: When a stock price rises dramatically. Example: "That stock is mooning! It's up 50% this week."
Bagholder: An investor left holding a stock or asset that has become worthless or declined significantly in value. Example: "Those who bought at the peak are now bagholders, as the stock plummeted."
BTFD: "Buy The F***ing Dip." A strategy suggesting that one should buy stocks after a decline in prices. Example: "The market had a minor correction today. Time to BTFD!"
To the Moon: A phrase indicating that a stock or asset is expected to rise significantly in value. Example: "This company's new product is revolutionary. It's going to the moon!"
Stonks: A humorous way of referring to stocks. Example: "Stonks only go up!" (Note: This phrase is often used ironically, as stocks can and do go down.)
Bears/Bulls: Bears are pessimistic about the market and expect prices to decline. Bulls are optimistic and expect prices to rise. Example: "Given the current economic indicators, I'm bearish on tech stocks."
Gamma Squeeze: A rapid increase in the price of a stock, driven by a high volume of option contracts being exercised. Example: "The unexpected news caused a gamma squeeze, pushing the stock's price way up."
Short Squeeze: A situation where a stock's price rises sharply, forcing those who bet against it (short-sellers) to buy shares to cover their positions, further driving up the price. Example: "The rally was intensified by a short squeeze, as many had to buy back the stock they had shorted."
WallStreetBets terminology is a mix of humor, internet slang, and finance jargon. While some terms might sound frivolous, they represent real strategies, sentiments, and phenomena in the investment world. Understanding this lingo not only helps in following the discussions on the subreddit but also provides insight into the mindset of a new generation of traders. Please let us know in the comments if we missed some terms.