Rebalancing is periodically adjusting your holdings back to your target allocation by buying underweight assets and trimming overweight ones.
Portfolio rebalancing is the process of bringing your asset mix back in line with your target allocation after market movements have shifted it.
Over time, winning assets grow to take up a larger share of your portfolio than you intended, increasing your risk. Rebalancing means selling some of the overweight positions and buying the underweight ones to restore your plan.
This enforces a disciplined buy-low, sell-high habit and keeps your risk level consistent with your goals. Investors typically rebalance on a schedule, such as quarterly, or when an allocation drifts beyond a set threshold.
WalletLens shows your live allocation across crypto, stocks, metals and cash, so you can see at a glance when a position has drifted and decide whether to rebalance.
WalletLens is a free, private net-worth tracker that puts concepts like this into practice — it tracks your crypto, stocks, gold and cash in one dashboard, computing cost basis, P&L and allocation automatically with live prices. No account, and your data stays on your device.
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