Depending on their strategy, I guess different people keep different percentages of their account value in cash (“free funds”).
Probably long-term investors just invest it all in value stocks each month and don’t try to trade/time the market.
I see myself as a long-term investor, but I still keep about 5% of my account value in cash. Half of that is “blocked for pending orders”, waiting for a good opportunity for value stocks. So many good businesses I would love to own look so overvalued now. A few times over the last months, I’ve used this cash to successfully “buy the dip”. But in the end, it could prove better just to buy the stocks you believe in - the sooner the better.
What do you think?