. Every month, dollar cost averaging (DCA) to put 50% into tqqq, and 50% into qqq.
. When tqqq grows to 70% of the portfolio, sell some tqqq and put the money into qqq to bring the ratio back to 50/50.
. Meanwhile, continue to do DCA every month to put new money at 50% into tqqq, 50% into qqq.
In a rising market, tqqq will grow much faster than qqq. This method lets tqqq spit the gains into qqq. In this way, the gains will not be wiped away if in case a crash comes and tqqq drops 90%.
. If a crash comes and the tqqq index drops by half, then sell half of my qqq and put the money into tqqq.
. If the tqqq index drops by 70%, with the remaining qqq sell 1/2 and put it into tqqq.
. If the tqqq index drops by 90%, then put all the qqq money into tqqq. In addition, use HELOC, commercial LOC and cashout refi to put more money into tqqq. This is because tqqq dropping 90% would be an once-in-a-lifetime opportunity to buy tqqq. It will probably happen once every 10-20 years.
. If 4-6 does not happen, then just keep doing 1-3. However, if 4-6 happens, especially 5 and 6, it would be a great and rare opportunity to go all in into tqqq. If tqqq drops by 70-90%, it does not make sense to still maintain the 50/50 ratio. Instead, all the money goes into tqqq to grab such a rare opportunity.
Keywords: Long term, DCA, rebalance, index, not individual stocks, 10-20 year horizon.
Did I miss anything? Did I overlook some factors? All the experts, gurus and friends, please share your advice/feedback.