Now that the price has fallen ....

"I buy cheap stocks."

Identifying "cheap" means comparing price with value.

What attracts your attention is that the price has fallen. 

Scrutinize the new lows list to find stocks that have come down in price. 

If the price is at a two or three-year low, so much the better.

Some brokers may call with suggestions.  These tend to be at the opposite end of the spectrum from the momentum stocks that most brokers are peddling.

Be especially attracted to stocks that have gapped down in price - stocks where the price decline has been precipitous.

Stock prices sink when investors have been disappointed, either

• by a recent event such as an earnings announcement below expectations, or
• by continued unsatisfactory performance that ultimately induces even patient investors to throw in the towel. 

Some investors put money in

• these companies with shares that have plummeted in price, and
• in those that have slid downward gradually but persistently. 

These companies can be in different industries, and maybe large, medium and small companies. The unifying them is that the stuff they buy is on sale.