If you are pre loading a suspension to the max, then you should be receiving a stiffer ride. Maximum suspension pre-loading is also good when having a passenger. Please correct me if I am wrong on this.

 

The suspension pre-load should be matched to the total load carried on the bike. Rider + gear + passenger. If you and your passenger are light, then you may not need to go to the max pre-load setting. Then again, you did say nighster. I think their shocks are different than mine.

 

I only have two clicks to max it out on mine, but I am usually carrying my 10 year old daughter.

 

I set the pre load to max when riding with my wife even though she's petite, that's what the Nightster owner's manual recommends. It is a stiffer ride but lessens the chance of bottoming out over bumps.

 

You have the right idea. Generally, set your pre load to make the sag about 1/3 of the totao shock travel.