Bag Holding Meaning in Stock, Bond, & Crypto Investing
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Are you familiar with the greater fool theory? It’s a money concept that describes choosing an investment not because of its fundamental value, but because the investor expects someone else (a “greater fool”) to pay an even higher price for it.
The greater fools are those left “holding the bag” after the savviest investors capture their profits. Nobody wants to be the greater fool—or the bag holder—when the performance of an investment starts to change.
Here are 10 mistakes that can leave you stuck holding the bag—and how to avoid them.
Mistake 1: Chasing the high
Chasing the high as a trader or investor means buying an asset that’s already increased…
