Have you ever bought a stock or an ETF you were convinced would soar, only to see its value plummet? If so, you’re not alone. Many investors find themselves in this situation, known as bagholders.
A bagholder is someone who holds onto a losing investment, hoping that it will eventually recover. They’re often characterized as stubborn or irrational, but the truth is that bag-holding is a complex psychological phenomenon.
In this blog post, we’ll explore the psychology of bag holding and offer tips for avoiding this common pitfall.
The phrase’ bag holding’ originates in 18th century Great Britain and has since become a popular term across the globe. In its original context, being left holding the bag referred to a person who was left with stolen goods and consequently faced blame from the authorities while the rest of the criminal mob managed to escape.
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