What is a bag holder? A bag holder is a person who holds on to a stock all the way to $0 despite signs along the way that the stock needed to be sold. Bag holder stocks are also known as value traps, meaning that the stock seems like a value when in reality it is worthless.
What is a bag holder in investing?
A bag holder in investing is someone who holds a stock as its value declines. The term originates from the concept of being “left holding the bag,” meaning left responsible for something because others have abandoned responsibility.
What is bag holding?
Bag holders may hold the stock with the hopes that its price will eventually bounce back, or they are simply unwilling to sell for a loss. While the concept of “bag holding” isn’t exactly new, the term has been frequently used by today’s retail investors. Let’s learn more about what exactly bag holding is and how to avoid becoming one.
