Rebalance your portfolio regularly from "summary" of The Simple Path to Wealth by Jl Collins
Rebalancing your portfolio regularly means periodically adjusting your asset allocation to maintain your desired risk level. Let's say you have decided on a mix of stocks and bonds that you are comfortable with, based on your risk tolerance and investment goals. Over time, the value of your investments will fluctuate, causing your asset allocation to drift away from your target. If stocks perform well and increase in value, they will make up a larger percentage of your portfolio than you originally intended. On the other hand, if bonds perform poorly, their percentage in your portfolio will decrease. Rebalancing involves selling some of the asset class that has outperformed and buying more of the underperforming asset class to bring your portfolio back in line with your target allocation. By rebalancing regularly, you are es...
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