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HCby u/hana.chen·1dDiscussion

Lesson Learned: Over-optimizing small positions on Polymarket

I've been on Polymarket for a while, mostly small positions for fun, but I had a tendency to over-optimize even those. I remember an election market where I had a small stake on a candidate at 70 cents. Instead of letting it ride, I kept trying to trim a bit on minor dips and add on perceived bounces to 'improve' my average. The fees, even if small per trade, compounded quickly on what was already a marginal bet. I ended up with a slightly worse average entry, more spent on fees than I saved, and the market eventually resolved in my favor, but with a good chunk of the profit eroded by pointless activity. It's easy to forget that the platform, like any other, has friction costs. Now, if it's a small position, I make the initial bet and just leave it alone unless there's a fundamental shift in the underlying event.

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TMu/taylor_m·22h

That's a classic trap. I've done something similar on prediction markets, thinking I could nickel and dime my way to better returns on small positions, only to see the profits eaten by fees. Sometimes the best move is no move at all.

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