Today was indeed one of the craziest rides many investors would've got in - at least since the flash crash (I'm not sure why today's action wasn't branded as a flash crash - I would do so).
Anyways, let's jot down some things that should be learnt (for such days) from today's market action (starting with the most obvious to the least):
1. Don't Panic sell.
(Especially do not touch the long term stocks)
2. Don't Panic buy.
(Especially into volatile names just to catch one bounce)
3. Don't entirely base your strategy of the day based on what futures tell you before the open.
4. Never place market orders in a volatile market. You might feel stupid for the rest of the day.
5. If you want to take advantage of price discovery mechanism, trade only the most liquid counters.
6. Don't get carried away by mid-day rallies. If you you've missed the up move, accept it. If you're already late, don't worry about being a little more.
7. Wait till 3 pm before calling the direction of the market for the day.
8. No level is 'too low' or 'too high' for the market to move/cross in a certain day.
9. If the day is crazy-volatile, spread your buys across the day. Don't go all in and get trapped at the entry point.
10. Lastly, Bad days....end as well. Just as the good ones do smile emoticon
Keep your heads up. If you lost some today, there's always some money to be made tomorrow (the metaphorical tomorrow).
Hope you have something to book profits on..in which case,