What does dd mean in stocks investing

Many stocks traders often ask me what does dd mean in stocks trading.

That is usually a tell sign that such trader is a beginner trader.

Should you be in the same situation, this discussion about the meaning of dd in stocks trading will reveal the mystery.

Meaning of dd in Stocks investing

For years online traders have been using the word DD as a shortcut for Due Diligence.

Which is often used in the phrase: “Do your own DD”.

Simply put, it means do not rely on someone else opinion or research to make an investment.

Instead, spend time or money performing your own analysis that should lead you to invest in a stock or asset class.

You should be aware that some traders can use the word “DD” for Double down.

In this context, DD implies buying more shares of a stocks despite your position being a loser.

It is quite a dangerous behavior because you can end up losing a great deal of money.

Typically, traders are blindsided by this because they think lowering their average cost in a guarantee of a successful trade or investment.

What does DD mean in stocks investing -2022 market cyclic has needed a lot of due diligence(DD)
2022 Markets need a great deal of Due Diligence to stay ahead of High Volatility

Why is doing due diligence important in stocks

The year 2022 has been full of uncertainty and thus due diligence has been more necessary.

But even outside of these extreme conditions, how can serious investors throw money into a position without at least spending some time to investigate the validity of the trade?

The reality is that most retail traders often take shortcut by simply relying on other people’s opinion for their investments.

How do I know this you may ask?

I have been running a Discord Room since 2000.

What does DD mean in stocks investing? - Winning trade positions from Successfultradings.com
Example of Successful trade that requires very little due diligence (DD)

Despite my encouragements for traders to spend time learning the mechanism of investing, many of them rather focus on the trades I provide.

They care less about why the trade is working and more about just getting in a trade, any trade for that matter.

Lack of Accountability

The problem this type of traders who do not perform proper due diligence is that they are always at the mercy of the market fluctuations.

By choosing not to do your own diligence, you are inheriting the Risk someone else may be comfortable with.

In such situation, you will not be ready to manage the position correctly even when it is working out.

Many times, on a great trade like the one pictured above (2000% profit in 30 minutes), traders would not know when to exit or take profit.

Similarly, on a losing trade, those same traders are not prepared to take a stop loss in order to live to fight another day.

As a result of lack of due diligence, one can lose a great deal of money in a very short time.

Wat does DDmean in stocks investing - learning to invest
Webull Investment Lessons for Beginners

How to conduct proper dd in 2023

The first step in conducting proper due diligence is to know your style of trading.

Then, you must understand why type of investment goal you have in mind.

From there, you will be able to focus on specific tools that align with your style and your investment objectives.

The best way for me to summarize this is to know what type of trader you are.

Here is a good read about the Psychology of trading.

What are the Best Services to do dd yourself?

What should you look for when investing in stock is a function of your investment time horizon and style.

Some traders like to be patient and allow enough time for their investment to flourish.

This is called buy and hold method.

Such traders do not concern themselves with small day-to-day variations which over the long term are simply noise.

On the other hand, some traders want to profit from short term movements.

The way to achieve their goals is by mastering technical analysis.

This category of traders is often known as Day traders.

They aim to make small or big amount of profit through intraday price variation.

FINVIZ Fundamental Analysis

The type of due diligence that you can perform on Finviz is technical analysis.

In there, a lot of financial ratios are available to help you as a trader determine the validity.

Tradingview for Technical dd Analysis

Tradingview is the charting tool by Excellence.

Short term traders can perform their due diligence on this platform.

Technical indicators are easy to chart and there even a large community of traders to learn from.

Can you do dd on Webull?

Webull combines technical and fundamental due diligence.

Learn how to leverage all the tools Webull has to offer through these series.

How to Use Webull Screeners ?How to Use Webull charts ?
Can you short on Webull ?Can You Paper Trade Options on Webull
How to do Webull Due Diligence (DD) on Webull

Technical Due Diligence Analysis Video

People Also Ask FAQS

What does DD stand for GME?

For GME and other meme stocks like AMC, DD stands for Double Down.

Which means buying more when the price come down.

What is IV Crush?

Follow the above Link for full detail on how IV Crush need to be part of your DD for options trading.

What does DD mean on Wallstreetbets?

Wall Street bets often used DD interchangeably as Due Diligence and Doubling down.

What does MM and DD stand for?

MM stands for Market Makers while DD means for Due Diligence.

What is YOLO on Wall Street Bets?

YOLO means “You Only Live Once”.

It refers to this Cavalier attitude to investing that the Apes adopted by throwing caution out of the way.

In other terms, it means not to be afraid ad be at ease with a great deal of risk because the reward is worth it.

YOLO can be a verb. “Are you going to YOLO those calls for Expiration?

Or it can be an adjective in this other phrase: I am using JULY1 145 APPL Calls as my YOLO play.

Is a bag 100 or 1000?

A bag is 100. The term is often used in the phrase “you are left holding the bag”.

Traders is such situation are the bag holders meaning their investments have lost a great deal of money.

On the other end, when you have a big winner, you can express it as a n-baggers.

200% is two baggers.

300% is a 3-baggers.

Check out this Trading System that make it a point to record 10-baggers.

Download My Free Stocks Investing Dictionary PDF

You want to learn more stocks trading terms like DD, buying the dip, paper hand,

download this free stock and options dictionary today.


Regardless of your preferred style of investing, the process of DD is primordial for sucess.

Even when you rely on a highly reliable trading system, there are insights that only due Diligence can reveal to you.

As such spend time investigating your investments before throwing capital at them for that discipline will save you a great deal of money.

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