Most prediction market traders lose money, and most of them skip the research. Sikt Intelligence was built to do that research on every question: read the market, check the evidence, form an independent probability, and put it next to the market's price. This guide walks through the same six steps, so you can do them by hand in about 15 minutes, and see exactly what Sikt does for you.
Watch: an 11-minute demo of Sikt Intelligence, the AI superforecaster we are building. The video loads from YouTube when you press play.
Why research beats instinct
A price is the market's probability, and it is usually a decent one. To do better than the price, you need a reason to believe the true probability is different, and a reason is something you can write down and check. In October 2026, Galaxy Research found that 69% of retail Polymarket accounts finished below break-even (why most prediction market traders lose money). Instinct is free; it is also what the majority is trading on.
Step 1: Read the rules, not the title (2 minutes)
The title is a summary. The rules decide who gets paid. Polymarket's own documentation puts it plainly: "Always read the resolution rules before trading. The market title describes the question, but the rules define how it resolves" (Polymarket).
Check three things:
The resolution source: which official announcement, data release or website decides the outcome?
The deadline: exactly when does the window close, and in which time zone?
The edge cases: what happens if the event is delayed, partial or ambiguous?
What Sikt does: before any research starts, Sikt reads the market itself: the question, its outcomes, its rules and its current prices. Every forecast is about the market as written, not the headline.
Step 2: Start from the base rate (2 minutes)
Before looking at today's news, ask how often events like this happen. How often do incumbent senators win re-election? How often does a central bank move at a meeting where it signalled a hold? This "outside view" anchors you to history instead of to the loudest story. We explain how in base rates: the first step in every good forecast.
What Sikt does: every forecast starts from what usually happens in situations like this, and only then adjusts for what is different this time.
Step 3: Gather the evidence, and check it (6 minutes)
Look for what has changed since the base rate: polls, official statements, data releases, schedules, court filings. Three rules:
Prefer primary sources. The central bank's statement beats a summary of it.
Note the date of every fact. Old news looks like new news on social media.
Drop what you cannot verify. A claim with no source is a rumor, not evidence.
What Sikt does: Sikt researches each question from scratch in today's news and data, checks every fact against its source, and throws out what it cannot verify. It does this for every question, every time, without getting bored or tired.
Step 4: Write down your number, before you look at the price (1 minute)
This is the step almost everyone skips. Once you have seen that a contract trades at 63¢, your own estimate tends to drift toward 63%. Psychologists call this anchoring (Tversky and Kahneman, 1974). Write your probability down first, with one sentence on why.
What Sikt does: Sikt forms its probability from the evidence, independently of the market's price. That independence is the whole point: a second number is only useful if it was not copied from the first.
Step 5: Compare with the market, and find the real gap (3 minutes)
Now look at the price, and at more than the price:
The spread: the gap between buy and sell prices. A wide spread means the headline price is not what you would actually pay.
The fees: on Kalshi, fees are highest near 50¢, around 1.75¢ per contract (Covers). A 2-point gap can disappear in costs.
The other venue: if Kalshi and Polymarket list the same question, compare both. A big difference usually means different rules or a thin market (see prediction market odds, explained).
Long shots: cheap contracts on dramatic outcomes are systematically overpriced (the favorite-longshot bias).
Then ask the most important question: why might the market see something you don't? Someone may know more, or the rules may differ from your reading. Only a gap that survives these checks is worth anything.
What Sikt does: Sikt shows its probability next to the market's price, outcome by outcome, so the gap is visible at a glance, together with the reasons behind it and an honest note on how much to trust it.
Step 6: Keep score (1 minute)
Record your probability, the price and the outcome when it resolves. After 20 or 30 forecasts you will know whether your 70% calls happen about 70% of the time (calibration) and how your accuracy compares with the market's (the Brier score). Without a record, you cannot tell skill from luck.
What Sikt does: every Sikt forecast is scored against what actually happens, misses included. Our first public test is the Sikt Midterm Bench, on the key 2026 Senate races.
The workflow on one card
Step
You, by hand
Sikt
1. Rules
Read the resolution source, deadline and edge cases
Reads the market and its rules first
2. Base rate
Ask how often this usually happens
Starts every forecast from the outside view
3. Evidence
Primary sources, dated, verified
Researches from scratch, checks every fact
4. Your number
Write it down before seeing the price
Forms its probability independently of the market
5. The gap
Spread, fees, other venue, long shots
Shows its number next to the price, with reasons
6. Score
Keep a record, check calibration
Scored on every forecast, in public
Why build Sikt at all?
Doing this well takes discipline, and doing it on dozens of markets takes a team. Professional trading desks build exactly this kind of independent probability in-house (see how hedge funds and quant firms use prediction markets). Sikt Intelligence is building it for everyone: an AI superforecaster that does steps 1 to 6 on every question, consistently, with its sources showing, and puts an honest second number next to the market's.
Watch the demo above to see it in action, follow the live odds on our 2026 midterms page, and join the waitlist for early access. Nothing here is financial or investment advice; research lowers the odds of a bad trade, but nothing removes the risk of losing money.
Key takeaways
Read the resolution rules first: the title describes the market, the rules decide it.
Start from the base rate, then adjust for verified, dated evidence.
Write down your own probability before you look at the price, to avoid anchoring.
A gap with the market only matters if it survives spreads, fees, rules and the long-shot bias.
Keep score; Sikt does all six steps on every question and is scored in public.
FAQ
How do you research a Polymarket or Kalshi market?
Read the resolution rules, start from the base rate, gather dated and verified evidence, write down your own probability before looking at the price, compare it with the market after fees and spreads, and keep a record of every forecast.
Why should I write my probability down before looking at the price?
Because seeing the price pulls your estimate toward it, a bias called anchoring. A probability formed independently is the only kind that can tell you whether the market is wrong.
What does Sikt Intelligence do?
Sikt Intelligence is building an AI superforecaster that researches each prediction-market question, checks its sources, forms its own probability independently of the market and shows it next to the market's price. It is in research; you can join the waitlist for early access.