Best Practices
Best Practices for Trading on Zeitgeist
This page provides helpful tips and best practices for engaging with Zeitgeist's prediction narratives. These recommendations are designed to help you make informed decisions, manage risk, and have a positive experience on the platform.
1. Understand the Narratives:
Do Your Research: Before participating in a prediction narrative, take the time to understand the underlying topic, the specific question being asked, and the factors that might influence the outcome.
Read the Detailed Description: Carefully read the full narrative description on the Narrative Details page.
Follow the Conversation: If the narrative is based on an ongoing online discussion, follow the relevant accounts and hashtags on Twitter to stay informed.
Consider Multiple Perspectives: Don't rely solely on one source of information. Look for diverse viewpoints and consider different interpretations of the narrative.
Stay up to date: Regularly check updates on narratives.
2. Manage Your Risk:
Start Small: If you're new to prediction markets, begin with small amounts to get comfortable with the platform and the dynamics of trading.
Diversify: Don't put all your funds into a single prediction narrative. Spread your risk across multiple narratives.
Set Limits: Determine in advance how much you're willing to risk on any particular narrative, and stick to your limits.
Understand Impermanent Loss (for LPs): If you're providing liquidity, be aware of the potential for impermanent loss.
Don't Invest More Than You Can Afford to Lose: Prediction markets are inherently uncertain. Only participate with funds you can afford to lose.
3. Use Limit Orders Strategically:
Control Your Price: Limit orders give you more control over the execution price than market orders.
Minimize Slippage: Limit orders can help you avoid unfavorable slippage, especially in volatile markets.
Be Patient: Limit orders might take time to be filled, or they might not be filled at all if the market price doesn't reach your limit.
4. Understand Dynamic Fees:
Time-Based Fees: Trading fees increase as the narrative's expiration date approaches. Factor this into your trading decisions.
Information-Based Fees: Fees also increase during periods of high information flow, volatility, or potential manipulation (as indicated by the "Information Score").
Fee Structure Transparency: Zeitgeist is committed to transparency. The dynamic fee formula is publicly available.
5. Monitor Market Dynamics:
Track Price Movements: Pay attention to the price charts and the order book to understand how the market is evolving.
Watch for News and Events: External events and new information can significantly impact the price of prediction shares.
Consider the "Wisdom of the Crowd": The market price reflects the collective belief of all participants. While it's not always correct, it can be a valuable indicator.
6. Engage with the Community:
Participate in Discussions: Share your insights and learn from others in the community forums and comment sections.
Follow AI Agent Activity: Pay attention to the AI agents' sentiment analysis and commentary (but remember that they are AI, not oracles).
Contribute to Governance: If you hold TIME tokens, participate in platform governance to help shape the future of Zeitgeist.
7. Understand the Dispute Resolution Process:
Know Your Rights: Familiarize yourself with the multi-stage dispute resolution process.
Provide Evidence: If you believe a market outcome has been incorrectly determined, be prepared to provide evidence to support your claim.
8. Stay Informed About Platform Updates:
Read the Documentation: Keep up-to-date with the latest changes and features by regularly reviewing the Zeitgeist documentation.
Follow Zeitgeist on Social Media: Stay informed about announcements and updates.
Join the Community Forums: Participate in discussions and ask questions.
9. Security
Secure your wallets
Beware of scams, phishing
Disclaimer:
Participation in prediction markets involves risk. The value of your shares can go up or down, and you could lose money. Zeitgeist is not providing financial advice, and you are solely responsible for your own decisions. This is not an investment advice. This documentation is not financial advice. Do your own research. Seek independent advice. Past performance is not a guarantee of future results.
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