This wild and crazy market correction has been so replete with intraday
volatility that even the most placid traders I know have been pushed to the
brink of hysterics. Let's face it: It's hard to be calm, cool and collected
when the Dow plunges 635 points one day, surges 430 points the next, then
crumbles 520 points the following day. Now normally, volatility is good for
traders, as astute buyers and sellers can make some great money if they get the
timing right. Unfortunately, you also can get your hat handed to you in a matter
of minutes. Over the past couple of weeks, I've sought out literary material
to help keep me calm. The other day I came across Rudyard Kipling's poem,
"If". Here's the money quote from this great work: "If you can keep your
head when all about you are losing theirs …" Yes, keeping your head in a
crazy market is easier said than done, but the task can be made a lot easier if
you take a few steps to mitigate risk and palliate your fear.
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