Prediction markets are often affected by public sentiment and trending topics. For example, a popular topic, news event, or social media discussion may trigger a large number of bets, causing odds and market expectations to fluctuate sharply in the short term.
For beginners, relying too much on market sentiment can easily lead to blindly following the crowd or making impulsive bets, increasing the risk of loss.
Ways to manage it:
Maintain Independent Judgment
Do not blindly follow a popular option just because many people are betting on it; make decisions based on your own analysis and research.
Observe Market Trends Calmly
When a hot event first emerges, observe for a period to see if market sentiment stabilizes before deciding on your betting strategy.
Establish Betting Rules
Set rules for each bet’s amount, take-profit, and stop-loss to avoid being influenced by market sentiment and changing your plan.
💡 Tip:
Beginners can treat emotional fluctuations as a “learning opportunity,” observing how odds and fund flows are affected by collective psychology to gain experience.
In any situation, always analyze the event itself rationally, rather than relying entirely on market hype.