As you play more games, your RD will decrease and your rating will change much less. This is the Glicko rating system and probably the most mathematically accurate.
The rating is an estimate of your playing strength. The fact that it jumps a lot when your RD is high is a result of the estimate being poor. As you play more games and the estimate gets better the fluctuations go away.
I lot has been posted on subject of ratings, their appearance, and update, so I would like to suggest something I think can help for them to become real playing measurement.
Ratings on this site are very fluent, you can go +-50 points based on a single game, therefore being +-300 points within a week, which I think is not good. It should be like they are showing your overall playing strenght, not just strenght shown in last 3 games.
My suggestion:
1. new people. For them there should be some kind of provisional rating until they complete let's say 10 games. In that period rating should be as jumping as it is now.
2. "old people". For guys already having more than 10 (or whatever) completed games, rating should be updated once a month, based on their rating from previous month, score of games finished in this month, and overall average rating of people they played to in this month.
This system is similar to one FIDE uses, and I find it much better compared to one here. If someone has lost a game to a guy 200 points less rated (which happens all the time), it doesn't mean he should be punished by taking over 50 points (or even more) from him. This way rating would be much stable and changes made to it would more realistically reflect change in someones play and knowledge.