How do you deal with someone who could go all-in at the drop of a pin? I have trouble reading them. I don't know if they're just saying "screw it, let's bluff like mad" or if they actually have something.

Like in a hand I was recently in....here's the context: I had been having continual success raising preflop then winning with a cbet. This hand I was UTG with AKs clubs, raised 4x BB, short stack (0.80$) called from the SB. Flop came 8 7 J all diamonds. He checked, I bet 2/3 the pot, and he re-raised all-in.

For a second, I considered calling because I wondered if he had picked up on my habits and that's the only reason he went all-in, maybe thinking I was bluffing my cbets every time. I hadn't been at the table very long but I already knew he was a loose player because he had went all-in twice already in the short time I had been there (no calls).

I folded because I figured he might of had a small pair or at least a diamond, while I had nothing but overcards. Should I not have cbet in that context to begin with?

How do you deal with these players who give the impression that they have no respect for their chips? Just avoid them until your sure you have the best of it or what? I mean, I sometimes fold decent hands/position and cringe even when I have like AKs and I see I'm up against them just because I feel like I'm gonna get bluffed and I'm not gonna make much off them to begin with.

Argh....