I have a bunch if different scans. One is for stocks down 15% or more that are under $5. Then I have one that is over $5. I have them separated too. I have one that separates the under 5 otc/pinks from the nyse/nasdaq. I rarely trade otc/pink bounce plays - very very rarely since there are so many of them that drop and many times don't bounce.
My criteria for whether or not I buy is not just based on what percentage down it is - that is just one aspect. I like to know the reason for the drop. If it was an earnings drop I like to look at the numbers. If they were terrible I usually don't buy unless the drop is huge. If the earnings were good and better than the last quarter but the pps dropped due to company forcasting lower for the next quarter I will try it. That is just one example of how I differentiate. But everyone trades differently. Some people on the Bounce Board don't even check the news to see why a stock is down. They jump in solely on a huge percentage drop. I don't do that and sometimes I could miss out on a nice drop because I am busy looking up why it dropped in the first place.
In terms of how long I wait, I take the base hits most of the time. I don't wait for huge gains. Many times a stock goes nuts after I sell. Nothing I can do about that because I am short term most of the time. Example: Yesterday rgls went down because ceo resigned - I bought it at 11.62 and sold it at 12.08 - after I sold it the darn thing went up to 12.60's, so I didn't wait long enough. But I made what I need to and got out, and ps, it retreated after that and went back under 12.
Sounds like you are more of a value type investor. And if you are longer term, bounce plays are not for you. Unless you want to find a stock that has gone done a lot and you are looking for a longer term bounce.
