Infernoflame's definitions
A bag holder is a trader who buys a certain stock at its peak cost. The trader believes that the stock will rebound and increase in value, so they keep on holding onto the stock. The stock will most likely never reach the price the trader bought it at so, the trader ends up losing money. This phrase became popular when some members of the subreddit r/wallstreetbets bought GME at $300 and AMC at $20. These certain members continue to talk about how their investments will rebound and even make them money even though this will never happen.
Jeff: Did you know that Jimmy bought GME at $300. He is still holding onto it. He thinks it will go to $1000
Greg: Damn, Jimmy is a bagholder.
Greg: Damn, Jimmy is a bagholder.
by Infernoflame May 12, 2021
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