Scaling into or out of positions when changing asset allocations eliminates the need to be perfect on trades.

If you scaled out of equity heavy asset allocation from late July to late September, then scaled back in from late October to late December, you'll be fine.

Panic selling at the end of a correction turns temporary losses into permanent losses.

I preach scaling into and out of positions and asset allocations ad infinitum. There is a simple reason. Trading perfection is impossible with any sustainability. Yes, we will sometimes nail a trade almost perfectly, but the idea that is what we are trying to do is completely and utterly wrong. To read more, a subscription is needed: Click here to subscribe