Good stocks usually bounce back, bad stocks just keep going down (although not in a straight line).
If a stock is down and you hold on to it what is it costing you? Is there a yield to compensate or has the yield dropped as well? Is there a potentially better stock?
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Good Bye
It all depends on the underlying fundamentals of the company you bought stock in. "In general" - stocks follow the direction of the market, but respond to company news directly.
Let's say I own a stock called x, and I paid $1.00 for it. Stock x drops down to $0.83
So I just lost money. However, Can't I hold on to my stock and wait for it to come back up? Yes it may still continue to drop, but don't stocks eventually come back up?
