Its quite tough to recover losses and in your case especially that you want to first sell your investments at loss and then recover it, it becomes more difficult. It is always advisable to never sell anything at loss because you will get a very little amount as compared to what you invested. With this amount it becomes almost impossible to recover anything. So holding on to your investments is always recommended to recover your losses. But if you are a trading expert then you must be always willing to sell at your stop loss because that is the only way you will have some free funds to invest later on.
Your advise makes sense for a bull market. But what to do if this is a bear market. You have a loss and what's is the point of holding and watching it go lower and lower?