The more i think about it, the more i'm afraid of getting my whole account burnt, and that's why, I would like to talk about this topic, and listen to everyone else's opinion. Let's use my case as an example. My 1R(initial stop) value is normally 2% of my portfolio. And I only allow 6% of my portfolio to be at risk at any one time. Let's say u have a 10k account, and you traded a stock at $20, with the initial SL at $19. Your risk is $1, sizing will be $200/$1 = 200shares. To make things short, let's just say, u are holding 3 positions exactly the same as the above stated criteria. Same price, same risk, same size. Although you are only risking $200 on each position, which accounts to $600, in the event of a major incident just like the 911, all the 3 stocks open at $10 the next day, you get stopped out, and your account turned from 10k into 5k in a single night. I was thinking of buying some cheap options to hedge against my long positions. No doubt it will reduce the return on every trade, it pays as an insurance to this kind of unforeseen huge events. I'm not sure whether it works well, just something that came across my mind. Is there a way to take care of this? Anyone using any other means of protection? Please share. Would greatly appreciate that.