Rebalancing and Investing Mindset

Rebalancing involves selling assets that have increased in value and buying those that have decreased, a powerful strategy in investing. It is advisable to rebalance at least once a year or after significant market movements to ensure the portfolio is on track. Adopting a mindset of compartmentalization, focusing on the initial setup, and only revisiting for rebalancing can prevent counterproductive interventions driven by emotions. Investing doesn't have to be complicated; key rules include being invested in the stock market, avoiding individual stock picking, maintaining a diversified portfolio, being mindful of fees, utilizing passively managed index funds, and regular rebalancing.