Well, I guess it' happy if soaking wet.

This palm is a bit unusual among palms as it prefers conditions most palms would find intolerable. If you let it dry out, it will not be as forgiving as most palms. Here is some background on your Chamaedorea.

http://www.palmpedia.net/wiki/Chamaedorea_cataractarum

Cataract Palms get their name from cataracts in rivers and creeks where they naturally grow. Although they like it wet, don't let the water in the pot get stagnant. Always give them enough water to flush out any that's stagnant.