Bag Holder

A bag holder is the person left when the music stops. Bought near the top, didn't cut the loss, and is now down 80-99% on a position that's unlikely to recover. The 'bag' is the unrealized loss they're carrying around.

There's a difference between conviction and denial. Averaging down on a working thesis is a strategy. Averaging down on a dead project because you can't admit it's over is how bags become permanent. Sometimes the right move is to cut it, take the tax loss, and move on.