This market dip was short but very strong. (2026.3~4)
For about three weeks, I reduced position size.
Finally, on April 9, 2026, this defensive stage ended.
Usually, a bear market lasts for 1 or 2 months.
This time, it only took 3 weeks.
It was short, but the price changes were very fast and intense.
The Reason and My Response
The main reason for this drop was the “US-Iran conflict.”
Thankfully, there was news of a ceasefire.
(2026-04-08)
After the news, both US and Korean markets rallied strongly (even if it was just for a day).
- US Market:
- My “Strategy” started to show good results after I reduced my position size.
- However, the market bounced back very fast.
- In the end, keeping the original size would have made more money.
- The market rallied strongly after the ceasefire news.
- Korean Market:
- This market is currently in a bubble, so the volatility was very high.
- There was a moment when the price dropped a lot.
- My risk management saved me during this time.
- I missed some profit, but I protected my account.
- Without this plan, I could have lost 13%. Instead, I finished with very small losses.
Summary: Position Sizing and MDD Defense
The goal of “Reducing Position Size” is not about making the most profit.
The real goal is to survive by blocking big losses (MDD).
As I saw this time, I might make less profit when the market bounces back quickly, like in the US.
But when the market is very unstable like in Korea, this strategy is a strong shield.
It stops me from losing too much money and losing my mind.
I confirmed my rule again: “I traded some profit for safety.” It was a very meaningful lesson.
Related Articles (관련 글 보기)
- Step 1: What My Trading System Does When the Market Warns Us
- Step 2: What I Learned After Reducing Position Size During a Storm
- Step 3: Protecting the Account: Why I Reduce Position Size
