That's it. That's the key. My stop is always zero. Anything else and I will be forced to sell. Let's say I buy at 10 with a stop at 9. It will go there. What if its 8. The same. Its the stops that actually control the prices. Why do prices fluctuate? They have to.
If you bought just a little this would be no big deal. As for options... You have to buy long dated ones with very little premium. This is possible if a stock is range bound since people assume it will stay like this. When it gets to the bottom area on bad news and those two conditions are met go for it. You have to find a way to determine that the stock is being dumped by the public else forget it. The option has to be quite a bit in the money else the premium is too high. Recently I bought June 12 EWI calls and paid .2.35 when the ETF was 14.25. And FXY for June also where it was 80.2 and the 77 calls were 3.7. But options are really something to stay away from.
Don't buy a lot of shares. Since its impossible to know anything. Buy a little. If it goes bad a bit more. A few times. But it could go to zero so averaging down has to be limited. That's it. When buying again there has to be a catalyst causing a plunge to a new low. LIke a downgrade or a prediction of future bankruptcy. So this is the exact opposite of what they say should be done. use stops and don't catch a falling knife. Also it takes money to make money.
No stock can bottom if there are people bottom fishing. Prices must drop until they are gone. That's why they move in ways which are unimaginable.
The problem is that the past and future are not related. As a matter of fact, studies show that many times the worst recover strongly.