In the past seven blogs, I have been considering the probable economic picture for 2009 and beyond. The question that would arise in my mind is “What will I do about it?”

We certainly can’t stop whatever is coming but we can prepare. One dictum I enjoy is one taken from the US military - the Eight Ps:

Proper Prior Planning and Preparation Prevents Piss Poor Performance!

If my highest probability scenario eventuates - (i.e. at least a stagflation environment if not a depression) - then we firstly need to keep a job, cut down expenses and save. Secondly, if we have a modicum of intelligence and discipline, we learn to trade the markets. The great thing about the present era is there are some genuine instructors out there, e.g. Alexander Tzavaras of www.tradewithpride.com to name but one. All we need do is prepare properly.

Let me drive the point home with a inspirational tale I recently read.

Here’s perhaps a little known fact about 9/11. Morgan Stanley Dean Witter had 2700 employees in Tower 2. Only 13 died; the other 2,687 survived and they survived because of the proper prior planning and preparation of their Chief Security Officer, Rick Rescorla.

After the 1993 Trade Centre bombing, Rescorla practised incessant drills that included even Morgan’s clients. Now think about this for a moment. Morgan Stanley is an investment bank and occupied floors from 77 down to 43. The drill would take away the execs from their primary function of making money and had them performing a drill that many thought was a waste of time. These drills lasted for 8 years and then 9/11 happened.

Of the 13 that died, one was Rescorla and four others were his security officers. The story goes that Rescorla heard about a few people who were still inside Tower 2, including a senior vice president who was doing business while everyone was evacuating.

I can’t do justice to this tale in this blog - read it for yourself in: The Unthinkable by Amanda Ripley. But the story drove home this point: it is this model of preparation that we as trader shall need to emulate - if we are to flourish in the coming years.

Refer this blog post to a friend or colleague…