Bag Holding

Bag holding refers to holding a weak or plummeting asset with little hope of recovery, often due to emotional attachment or denial of reality.

Example:
An investor holds shitcoin bught at $5 that now trades below $1. They refused to sell, even when it made a come back around $4 making it a textbook case of bag holding. Bag holding often results from having diamond hands without a proper exit strategy, turning conviction into costly stubbornness.