How to take leverage to go long in market (~2 years)?

I am not so experienced in the ways of the market, and definitely not in leveraging.

“But if the market falls, valuations go down, there will be a lot of opportunities valuation-wise, “

I think it is not necessary that while the valuations go down,when the market falls the intrinsic value of a stock also goes down. My entire purchase philosophy is based on the Ben Graham’s loony Mr Market concept.

Forgive me if I appear to be talking down, but just to put my theory on record, the whimsical Mr Market may offer you a stock worth ₹100 to you in ₹50, and in a bearish mood, you may get that for ₹30. Real money in the recent history was made in 2020, when in the corona wave even the mighty collapsed. My Bajaj Finance which was at ₹4000+ just before the panic, collapsed to ₹2000. And taken in by ‘experts’ at a channel, I sold them off. That was indeed the time to buy more.

In fact, I had bought IDFC First Bank for about ₹20 then. But didn’t hold it due to lack of confidence. But my bets on TCS, Tata Consumer etc paid off because not only I was getting them cheap, they would continue to be in demand from the consumers.

In fact, I entered the PSUs and Titagarh/Texmaco because of the momentum, but became wary when their valuations touched sky-high. I have got out of the major momentum stocks recently, read the PSU, and Railway, and Power stocks in general, because I was not confident about their high valuations.

Remember, the very raison de tre of the PSU craze was the market ingnoring them?

I have reinvested the money I got from selling these, but imagine SJVN which I sold for ₹146, going down to ₹100? Impossible? But then it went from ₹40 to ₹146?

RVNL was also ₹60 or so a year back. Now, it is ₹280. If I get it for even ₹200, I am assured when buying it on leveraged money.

There are you know many stocks which make knowlegeable people anxious. IRFC’s flight from ₹28 to ₹160, while great for the investors, defies logic.

I agree with you that when a stock goes down from ₹100 to ₹60, you worry it will never regain the heights. And of course, the bear-market may last for two years.

So, it is which you approach the market, momentum or value investor.

Keep us abreast of how it goes.