Megapixel,
Gaps are a part of a trader's life, especially if you carry over positions to the next day, it cannot be avoided. But Gaps are not to be feared, as the gaps for or against should cancell out each other or should generally be in your favour as there is a reason you holding a long/short position (presuming you are trading with the trend).
Having said that, there are ways to reduce the impact of gaps being against you.
For e.g you are long futures and say the stock opens 1.5% lower, without any reason. This would mean that your position is approx. 4K in the red. The best thing to do is to not panic, but to watch the screen for 5 minutes atleast.
It is quite likely that the opening 5 minutes are meant to shake off weak hands, and force them to sell. Opposite is true if you are short, Gap up open and the first 5 minutes of trading is designed to trigger SL.
It is likely that the stock will recover to its original trend within the next 10-30 minutes.
However, if the gap open is because of -ve news pertaining to the company, I think it is better to take the loss in the stride, but not panic but still wait and watch to see how the stock reacts. You would have noted that stock that open with deep gaps, even 10-20% recover their losses and even turn positive.
For e.g on Fri. 26th Oct. CESC (Due to takeover of Firstsource) opened at 300.10 and made a low of 283 in the first minute. Any panic trade would have meant a loss of 17K. However, within 5 minutes of trade, it recovered to 99.50allowing a decent exit to a trader.
My two bits worth...
QUOTE=megapixel;735644]Is there any way to stop loss from gap up or gap down ?
For example: see this chart ....a shorting guy will get a heart attack for this sudden gap up when he opens terminal at 9.15 AM and find this gap up.
how to avoid loss here ?[/QUOTE]