Whatever you do, don't jump out at the bottom! You have to hold on and ride it out. However, it is prudent to reduce exposure a bit when volatility is too high.

Whatever you do, don't jump out at the bottom! You have to hold on and ride it out. However, it is prudent to reduce exposure a bit when volatility is too high. See "Kelly Criterion" for how to calculate this. Inverse volatility weighting is usually sensible for this reason. You can guard against left tail risk with insurance. See the VXTH index and the SWAN ETF for good strategies here. Don't buy too much insurance, or you can't make money. You can also think of your future salary as a kind of bond in your portfolio that you can't sell. Seen in that light, the optimal balance is probably using some leverage, even if that means risking a total wipeout early on in your career.