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Fair enough, but by staying in I've ridden the correction back up again, and to a point where I'm ahead of when I bought in 18 months ago. Servicing a margin call allows me that flexibility. I also get to have my $20k BACK when the market corrects back up. Sure, I'm paying some interest for...

I think there is a perception that a margin call is, in itself, a negative event. It's not. Being forced to sell shares at a loss is a negative event. To my mind, as long as I can prevent the forced sale of shares, I figure the risk is appropriately managed. Ultimately, I'm not so worried...

That was exactly my point - I suspect we are in violent agreement. Investing in shares with borrowed money increases risk, but provided that risk is managed appropriately, I don't have an issue with it. I'm not quite sure what your second paragraph means, though. How much risk to take is...

Why? The cash for margin calls reduces the gearing ratio by reducing the loan - it has nothing to do with the performance of the shares. The shares will fluctuate in value over time, but will typically trend upwards in value. The gearing allows me more exposure to that, including collection...

I think I have to disagree with that. Avoiding a risk altogether is certainly a valid risk management strategy, but it's not the only one. I want high exposure to potential growth and dividend yield from shares over the next ten or so years, hence levering up. I also accept that sometimes the...

My shares dropped a bit, and I was hit with 2 margin calls in 6 months (which I covered with cash - yay risk management), so I would say I took some small hits but in the longer term it's not much really. With a long enough time frame, it shouldn't be a huge issue. Regarding retirement, I...