3) Do not discontinue your SIP.
This one is along the same vein as the previous point. To get the most out of a systematic investment plan, or SIP, you need to stay put during volatile times and bad markets. With every dip in the stock market, the SIP installment garners more units for the investor. This in turn lowers the average cost of purchase. Conversely, lump sum investing scores over the SIP route when markets rise secularly.
Over the past 10 trading sessions, the Sensex touched a low of 26,423.99 and a high of 27,603.71. Don't let the volatility frighten you. Not too long ago, in October 2014, volatility hit the Indian market begging an answer to the same questions raised today. The reason at that time was more global - a likely recession is Europe, compounded by slow economic growth in the U.S., fear over the spread of Ebola, and geopolitical hazards. VIX (Chicago Board Options Exchange's index of volatility) hit its highest level since late 2011 and the India VIX Index also jumped. But we got through that phase.
Don't forget the hit that stock markets across the globe took in 2011. The Sensex ended the year at 15,454. By April 2, 2012 it moved to 17,478 only to drop to 16,546 by May 8, 2012. Yet the annualised 3-year Sensex returns (as on May 8, 2015) are 17.88%
The point is that if you ignore market upheavals and stay the course, you end up making money.