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Master portfolio risk, diversification, and asset allocation
Learn how to manage risk, stay balanced in volatile markets, and earn rewards as you complete the island.
Rebalancing: When and why
1 of 10 topics
Why rebalancing matters more than timing
Portfolios don’t stay in balance on their own. One asset rallies, another slumps. Suddenly, what felt like a solid build now leans too far in one direction.
This skill shows how rebalancing helps you stay aligned with your actual risk and goals. It’s not about chasing performance but about keeping control.
Because even the best setup needs a checkpoint from time to time.
You’ll learn:
- Why portfolios naturally drift and how rebalancing keeps your original risk balance in check
- How to decide when to rebalance and when letting things run might be the smarter move
- How to automate rebalancing to save time without turning your strategy into a rigid machine