There are two basic types of markets -- those that are index-driven and those that favor stock-picking.
In an index-driven market, stocks tend to move in a highly correlated manner, without regard to individual merit. It doesn't matter if you own a "good" stock in a bad market. The likelihood is that it will be sold regardless.
Most "bad" markets tend to be index-driven. They do occur to the upside as well, but usually, most corrections are index-driven, and it will be quite costly if you rush to try to pick "good" stocks in a bad market.
Eventually, an index-driven correction will bottom out, and that is when stock-picking starts to re-emerge. Market players start sorting out the stocks that they think will perform best as market conditions continue. They will begin looking at fundamentals and chart patterns again, and the better stocks will gain attention and start to perform.
Currently, we are in a market that simply doesn't care about stock-picking. It doesn't matter if a stock is an exceptional value, has a great story, or an upcoming catalyst right now. It is going to be sold because market players are focused on raising cash and will sell whatever they have to raise more cash.
The good news is that this action creates some excellent opportunities, but timing is paramount to take advantage. The easiest mistake to make is to buy favorite names, too early, too big, and too fast, and then to dump them when they fail to bounce as quickly as hoped.
Stay patient, but also stay optimistic. This is depressing action, but it has happened thousands of times before, and eventually, it always leads to some great opportunities.