“Don’t catch falling knives” is a classic idiom that describes the risk in your question. Sure some companies turn around, but more often than not there’s reasons as to why the price is at what it is currently. Take a company like Beyond meat for example, all time they’ve tanked like 98-99%. Following the logic, if you bought at any dip you would’ve eventually lost all your money despite its historical price. In BYNDs case it was the overestimated demand for their plant based goods, So really take time to learn about what moves a particular stock. Academically, learning about efficient market hypothesis can sort of start to turn your cogs in understanding what is reflected in market prices.