Bagholder

A bagholder is an investor who holds onto a losing investment for too long, hoping for a recovery that never comes. The term is often used in a negative context, describing someone who is left "holding the bag" after a significant decline in the value of a stock or other security. Bagholders may have initially bought the investment with high hopes or during a market hype, but instead of selling when the price started to fall, they held on, expecting a rebound that didn’t materialize.

Example

An investor buys shares of a company at $50 during a market rally. The stock drops to $10 due to poor earnings reports, but the investor holds on, waiting for a recovery that doesn’t happen, thus becoming a bagholder.