Question about adjusting position size during high market volatility

I'd like to ask experienced stock traders: When the market is extremely volatile, or when there's major global news impacting the market, like during COVID or when interest rates rose sharply, how do you adjust your position size? I understand that it should be reduced, but sometimes when I see good stocks drop significantly, I can't resist. I'd like to know what principles or personal rules you use to make decisions on this. Is there a point where you tell yourself you must reduce or even withdraw from the market entirely? Thanks for your advice.