An investor who is on the wrong side of a stock for an extended period of time, with the consistent belief that he or she is in fact correctly predicting its direction, despite strong evidence to the contrary. Typically, this person loses most or all of his or her money in the process.

The term comes from people in soup lines during the Great Depression, who held potato bags filled with their only possessions.
"All the retail investors who bought priceline.com in early 2000 saw their investment value shrink 99% over the following year. They were the bag holders the smart traders unloaded their shares onto."
by Alex Koik-Cestone May 18, 2006
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In a swinger group it's the husband who holds while wife is merging with another group member...
wife says to husband " will U be my bag holder tonight? BIG black african wants me & he doesn't like his balls to drag on the sheets " !!

husband says to wife "####@$%$@$!" this is the last time I always get STINK HAND !!!
by itichie_nocanpo September 7, 2006
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