[john kane]

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Leveraged investments are for finding an opportunity, going after it using leverage to bump up the returns, and eventually getting out and back into more stable positions.

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i understand this, but say you have investment A. priced at $100. you think it is very unlikely to drop to $80. so you leveraged 5 times with a stop loss at $80.

2 years time it is at $170, as you expected. +$70. leveraging cost you 7% annually, costly you $15, so you only made $55. but you leveraged at 5 times, so youve made $275, rather than the $70 you would have.

surely it is better to leverage than not?

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I think you're looking at your stops the wrong way around. Your stop loss should be determined by the market and not how much you can afford to lose. Place your stops at a pre-determined level.

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sorry i probs didnt explain myself properly, but i try to decide on a stop loss, and then decide how much i am willing to put on it, and then leveraging accordingly. so in that sense i think it makes sense. i think it automatically then makes my portfolio weighted - those with higher volatility, so higher stop losses, are leveraged less.

im a bit annoyed still i havent jumped into silver, oil, hong kong and india before the recent jumps, makes me tempted to wait a bit for a dip, but i cant face trying to time the markets, i just want to buy and hold.

thanks for the replies, helps a lot.