I currently have 20 stocks* in my portfolio (market value $300,000) which are equal weighted (5%). I am a long term investor and retired. *As part of the stock portfolio, I actually have 19 stocks and 5% designated as cash.
If all stocks remain relative, i.e no reason to remove it from the portfolio, how frequent should I re-balance: quarterly, semi-annually or once a year? Plus, when should I re-balance? When a stock increases to 7% sell back to 5%) or only when a stock hits 10% (sell back to 5%)? If a stock falls below 5% I would buy more to remain at 5%.
I can always set triggers on my stocks when they hit any % increases/decreases. If all stocks increase/decrease buy/I would sell to maintain 5% and all increases/decreases go to cash. The cash position always increases as I make monthly contributions.