You must plan for an emergency. In case of fire, you have to be ready. If you have an accident you have to know what to do. You must always be prepared for an emergency, in life and in the market, you have to be prepared.

What will you do when something bad happens? You must prepare, have a plan, execute the plan and adapt.

Yesterday there was another attack on innocents, this time it was in Boston. Pray for the victims, their rescuers and care givers. Pray for the investigators and those who will bring the cowardly attackers to justice…

In the coming days as the dust settles and the scene of the emergency becomes a crime scene, the markets will react to the incident.

Yesterday we were thinking about a North Korean threat, today we are reacting to an unexpected attack in Boston. You can’t predict the future but you can prepare and plan. Do the preparation and the thought experiments now and you will be better prepared each time you confront the unknown in the future.

Today as I change my plan to adapt to the world as it is, at this moment, I draw on past experience. I will use the observations that I have made after similar incidents in the past. I will think back to how the market reacted each time and I will adapt my plan today, to how I expect the market to react in the future.

If you have a plan and experience, trade your plan carefully…

If you don’t have a plan or experience and don’t know how to protect yourself, just observe. Now is the time to start your planning for the future. Watch what happens next. Learn. What has happened in the past? Look at the market history over the years. How did it react in an emergency? Get your thoughts in order.

Pay attention to news and commentary. Collect articles, bookmarks, resources and information. Take notes and save all you need, in order to prepare for next time. Take advantage of any information that you can.

Watch and learn with the goal of understanding what happens in the market, how it happens and why. Learn who to trust as an honest resource. You will see all kinds of things in the market after a crisis like this. You will see the best and the worst in people. Watch and learn, be ready for what comes next.

Plan, execute and adapt. Succeed and help others…