All of this is pretty much spot on. We forget that we're not supposed to just up and sell when things drop. I keep reminding people of School House Rock:

"Buy low, sell high!
Take your piece of the pie!
That's walkin' on Wall Street!"

and it's just as true now as it was back then. The people who make money buy when things start to drop, and then sell it for more than you spent. It should be straightforward to everyone, but...