Three things rebalancing actually does
Rebalancing is not a trade. It is the discipline that stops your portfolio from voting itself off the rules.
01
It harvests volatility. Sells what ran. Buys what lagged. Math, not feel.
02
Without it, you are a momentum trader by default. Just a slow one.
03
A two-week cadence caps drift before it sets. Quarterly lets it ferment. Annual is buy and hope.
If your weights have not been touched in two years, you do not own the portfolio you started with.rupeecase.com / learn