Getting caught overnight by news

Quote from Sanjuro:

Is it true that if anyone is trading long enough that they will eventually get caught by a bad news holding overnight?

I usually trade with stops like 20-30 cents but will sometimes hold overnight if the stock is above my long entry. There is always the small chance that the stock I'm long has a surprise bad news the exact night afterhours I hold the stock which makes it gap against me 3-4 points.

Do other traders take this consideration into their trading plan? My 1R risk would turn into a 10R loss.

Any ideas or stories about this to share?

Thanks!
More...
Couldn't you reduce your position just before the close if you think you should hold overnight?

As to your question if you will eventually get caught by bad news, the answer is 'yes'. You must simply accept it. I have accepted the fact that anything can happen in the market at any time because that is the nature of life - if you want to live then you actually have to take the risk of something very bad happening to you at any time. So just reduce the risks to an acceptable level and enjoy the rewards :)
 
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