Always Have Some Dry Powder on hand (Patreon)

Great share from @GDinero - this is from Saifedean Ammous' book. 

I always emphasize the importance of having dry powder available at all times. This means having a percentage of your investment capital in cash or other highly liquid assets that can be quickly deployed to take advantage of investment opportunities or to weather market downturns. 

The amount of dry powder you should hold will vary depending on the market conditions, but a good rule of thumb is to have at least 5-20% of your capital in dry powder. In toppy markets, you may want to increase your dry powder allocation to 30% or more ahead of a war, and in extreme bottoms, you may want to go to almost zero cash.