Core terms
Bagholder
Slang for someone still holding a position that has fallen far below their purchase price. It describes a situation, not a strategy.
The term is common in chat rooms and social posts about small caps that spiked and then collapsed. It is often used mockingly.
Behind it is a real decision: whether to exit at a loss or keep holding in hope of a recovery. A plan with a predefined exit removes the need to make that call in the moment.
What traders should verify
Decide the exit before the entry. Holding a losing day trade overnight turns it into a different trade with different risks.
Do not conflate
Trader slang; no official definition.
Primary source
Trader usage: there is no official definition, and platforms and tools may calculate it differently.