“Paper hands” refers to investors who quickly sell their assets at the first sign of market volatility or downturns. This term implies a lack of conviction or resilience in holding onto their investments. When prices drop, paper hands tend to panic, leading them to liquidate their holdings, often resulting in losses. This behavior contrasts with “diamond hands,” which describes those who hold their assets through market fluctuations, exhibiting patience and confidence in their investment choices.The term is often used in trading communities to critique those who are perceived as easily swayed by fear or short-term price movements. In this context, having paper hands is typically seen as undesirable, as it can contribute to volatility and missed opportunities for potential gains. Ultimately, the mindset of paper hands reflects a more reactive investment style, lacking the long-term perspective that can sometimes yield better results in the market.