The pitfalls of 'just one more market' on Polymarket
I've been using Polymarket for a while now, mostly for election outcomes and some of the more clear-cut sports markets. My biggest lesson learned, and it's cost me a fair bit, is the 'just one more' syndrome. I'd be up a decent amount on a few positions, feeling good, and then I'd start looking for another market, often one I hadn't properly researched or had a strong conviction on, simply because I had the capital sitting there.
One instance that stung was during a fairly minor political event. I'd cashed out of a couple of larger positions for a solid profit. Instead of letting that sit or re-evaluating for the next major event, I jumped into a highly illiquid market with very wide spreads, on a whim. The odds shifted dramatically against me almost immediately with very little volume, and I couldn't exit without taking a significant loss on that small portion of capital I'd thrown in. It effectively chipped away at a good chunk of my earlier gains. It's not FOMO exactly, more like an undisciplined need to keep doing something with capital, rather than exercising patience. Now, I force myself to step away for a bit after cashing out of profitable trades, and only re-engage when there's a genuinely high-conviction setup, regardless of how much capital is available.