How Stock Value Works – Stay to gain or bail out

Hi All-

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I hope this is the right place to ask this, if not apologize as its gonna be super basic questions.

When I buy 100 shares @ 10.00 which is $1000.00 invested. In 5 months the stock drops to $5.00 per share then my value is $500.00 now if I want to sell. So I lost $500.00. If I want to hold long term I would need to hope that stock grows back up to @ 10 per share to break even and THEN hope it continues to climb upwards to over $10 to actually make a so called profit if I sell? Does this happen often is to take the loss hits and hold long term hoping to rebound?

Would be better to assume the stock if drop from $10 to $5 drop wouldnt rebound anytime soon and better to cut loss and just sell the stock and try again elsewhere?

Thanks for any input!