You are assuming that the stock rose to this level "on merits" and now it falls due to "stupidness". Maybe part of the growth was also "stupidness", and in tha

You are assuming that the stock rose to this level "on merits" and now it falls due to "stupidness". Maybe part of the growth was also "stupidness", and in that case buying the dip is a mistake because the "merit" price (value) is still way below.