With this strategy you can make huge profits and recoup potential losses. One of the best ways to avoid a pump-and-dump is to use the common sense of a proper stock DD strategy, this is even recommended by the SEC. Although it sounds simple, these three steps will get you far in stock DD with or without the influence of WallStreetBets. Double Down It has a few different interpretations, but it is basically when you are losing money on a stock, buy double the amount you initially bought.
Virtually every ASX listed company has a website with an "about us" section, so browsing it and their website can be a good starting point to understand their business, and a good start to a DD of shares. Following on from the checklist of stocks with DD meaning, you should make a point of researching short and long term prices. The term Due diligence is used in many different ways.
According to another user, DD can also mean "doubling down when WallStreetBets members are "telling you to throw all your money away because it's a promising investment looking to increase in value". In recent weeks, most of the fastest growing communities on Reddit are related to investment and trading discussions. Users refer to themselves as "degenerates or "retards" (an anagram of "traders") and, when they post their analysis of potential investment opportunities, they are referred to as "DDs or due diligence". And what about the other popular lingo at WallStreetBets? As reported by Reuters, "stonks" is an intentional misspelling of stocks; "YOLO" stands for "you only live once and refers to people who invest heavily in a given stock; "diamond hands" are WallStreetBets members' characterizations of their strong positions; and "to the moon" is a rallying cry for certain stocks.
The WallStreetBets forum behind GameStop's rise is a mystery to many of us, but the terminology thrown around by Reddit users doesn't shed any light. WallStreetBets user Mohammad Rajjaque explained on The Conversation that "DD stands for "due diligence" and refers to the detailed analysis of potential trading opportunities, "just like the kind of analysis that the now famous Keith Gill aka DeepF--kingValue would later post about computer game retailer GameStop, which led to the 100-fold price hike that has recently taken the world by storm.