What is a bag holder meme?

Well, not anytime soon, at least. A bag holder meme. The term comes from the phrase “left holding the bag.” The suggestion here is that most traders managed to “escape” from the stock or cryptocurrency in time. The only people left behind are the unfortunate bag holders, who now have to wait around and hope that the price recovers.

Why do retail investors become bag holders in meme stocks?

For example, a significant number of retail investors became bag holders in meme stocks due to (1) their lack of research on the securities they were purchasing, (2) the “fear of missing out” (due to significant social media hype ), and (3) the inability to develop an exit strategy when their securities started declining in value.

What is a 'bag holder' in stock slang?

In stocks slang, a “bag holder” is an investor who owns shares that fell in price and are unlikely to recover anytime soon. For example, if you purchase shares in a company at $5 and the price crashes to $1, then other traders may refer to you as a “bag holder.” In other words, you are now holding a stock that is worth significantly less.