Rebalancing a portfolio involves realigning the weightings of assets to maintain your desired level of risk and return, helping you keep your portfolio from becoming too risky but also enforces the strategy of buying low and selling high.

By selling high-performing assets and purchasing underperforming ones, you can systematically control risk and improve long-term returns.

Make it a habit to rebalance your portfolio at least once a year to ensure you're not taking on more risk than you intended.