Portfolio Rebalancing
The portfolio mix should be altered to meet changes in personal circumstances. As goals and needs changes, the portfolio allocation should reflect changes in personal financial conditions.
Portfolio should be periodically monitored to weed out holdings that no longer satisfy the original requirements for purchase.
Investors should take advantage of market fluctuations on the upside. When the stock becomes overvalued, investors should sell and replace their holding with one that is more fairly valued or undervalued.