Fighting Yoda

Cheap Stocks Aren't Always Bargains - Barron's

Stocks fall for a reason, investors sell them for a reason. A stock is worth what it is today and what it is likely to be tomorrow (whatever time frame), and not what it was yesterday. Just because you bought it at a higher price and not want to realize the loss, may not make the stock price go up. It is always wise to sell stocks that are not doing well – you would have done very well booking your losses on Citi, or BofA, etc ,rather than holding on to them

As regards $5, $10 stocks – history has it that they rarely recover, and most of the money is lost by the bottom fishers. Most importantly institutions and pension funds are not allowed to own (by their own charters) stocks less than $10 or $5. If the biggest buyers will not buy a stock – which way will it go but down.