There are so many factors that are involved on whether you should sell it or not. Is it a penny or a blue chip stock? Are you a trader or an investor -what are your time horizons? I think you already acknowledged that you made the mistake of hoping it would bounce back and waited too long. If it is a penny stock there are factors involved that could actually send it even lower than where it is now, ie issuing more shares, reverse split, etc. Remember that any loss you sustain may be used against your gains tax-wise. So hypothetically if you took a 5K loss on this one, and at the end of the year you had gains of 20K, your tax liability would only be on 15K. Taking losses are a very important part of trading. This is because if you trade you WILL incur losses. The trick is taking them while they are small. You should have an exit plan in your head before you even buy - for both the upside and downside.
