Why do we keep cash reserves?
During the bull season, most investors inject cash into the market. During this season, investors get excited and buy their cash in rising currencies without leaving any cash behind. Although it can sometimes bring profit, novices can make losses by making the slightest corrections.
Experienced spotters who have seen bulls before do not sell as much as possible at the beginning of the bull season and do not immediately utilize their newly acquired cash. Up to a certain point, at least 10% of the portfolio should remain in cash.
Long story short, this is it, and you should have cash reserves to be able to take advantage of such declines. I warned about this situation a few weeks ago in the article below.