"1) You haven't lost anything if you haven't sold"
This couldn't be further from the truth. There is huge opportunity lost. As it was pointed out earlier 100 shares at $10 is 20,000 shares at .05. If this runs to $1, 20,000 shares would be worth $20,000 for massive gains. 100 shares from $10 at $1 are worth $1,000 and $9,000 huge loss. So yes you have lost a lot by not selling.