My GN-4-S watch doesn't keep time when not worn , in daylight hours and in the sun it keeps perfect time when worn.

http://assets.timex.com/user_guides/W191_M131/W191_M131_NA_EN.pdf

I just got a M.Z. Berger AW206 366 so the setup should be identical.
The watch has four buttons total. I'll name then by their positions. Top Left (TL), Top Right (TR), Bottom Left (BL), and Bottom Right (BR).
(BL) is your mode switch. Press it once at a time to toggle between modes, (Time, Chronograph, and Alarm). From the Time mode press (BL) three times. This will put you back in time mode with the seconds flashing. Press (TR) to toggle seconds back to '00'. Press (BR) to toggle to the next setting point, and (TR) to advance it. Just keep pressing (BR) until all the settings points are the way you want them. Note: In time setting mode it only advances the setting forward when you press (TR). So when using it to change hours display for 12/24 hour display or daylight savings time you just have to keep advancing the hour until it shows up correct. There is no DST or 12/24 display toggle on this watch. You just have to change the hours display manually. To exit time setting just press (BL) once.

If it is an automatic it will be powered by either solar (you need to place it in the sun light for 8 hours) or powered by movement (you need to keep it literally moving for 2-4 hours- there are watch shakers you can buy for this purpose).

An Eco drive citizen is powered by the sun. You should take the watch out in the sunlight or put under a lamp to charge it for at least 12 hours. Once it is running you need to wear it to keep it running, you should be able to take it off at night and it will continue to run once it is fully charged. if it does not hold a charge over night after being fully exposed to light for 24-48 hours you may need to send it to Citizen for service on the capacitor. thank you!

Water condensation on the inside of your watch crystal means that moisture has entered your watch, most likely through the hole in which the setting crown/stem is fitted, or, possibly, through the door of your battery compartment. It's usually easier for water to enter a watch then to leave it again. Water inside a watch can quickly corrode delicate parts, causing erratic timekeeping and premature failure of the watch, so you'll want to get it out of your watch as quickly as possible.

Fortunately, it's not that difficult to get moisture out of a Swatch. Pull the crown out into the time setting position and remove the back battery hatch. Then, turn the watch face down and leave it in the sun for a few hours. If you're worried about dust and/or rain getting into your watch, leave it inside a parked car that's in the sun--that will actually speed up the drying process, as car interiors, with the windows closed, quickly heat up far beyond outside ambient temperatures (except in winter). If it's dark outside, you can accelerate the drying process by using a hair dryer set to low / medium heat and heating the crystal gently until the moisture has evaporated. You don't want to heat the crystal too much or else it may start to melt or crack.

Once the water is out of the watch, close up the battery compartment and update the time/date for your watch. You should be good to go, as long as you try to keep your watch dry when doing things like washing hands and the like. If you had been doing so, it's also time to stop wearing your watch when you shower, wash your car, or engage in other activities where the watch is exposed to a lot of water.

As you will see from the extract from the web site, these watches are solar powered.

" Tough Solar Power

• Shock Resistant
• 200M Water Resistant
• 29 times zones (48 cities), city code display, daylight saving on/off
• 4 Daily Alarms and 1 snooze alarm
• Countdown Timer
  Measuring unit: 1 second
  Countdown range: 1 second to 60 minutes
  Other: Auto Repeat
• 1/100 second stopwatch
  Measuring capacity: 23:59’59.99”
  Measuring modes: Elapsed time, split time, 1st-2nd place times
• Auto Calendar (pre-programmed until the year 2099)
  12/24 Hour Formats
• Accuracy: +/-15 seconds per month (with no signal calibration)
• Storage Battery: CTL1025
• Battery Power Indicator
• Power Saving Function
• Approx. battery life: 6 months on full charge (without further exposure to light)
  Module 5055"

Your watch should recharge by itself just sitting in the sun(4 hours) or near a lamp(12 hours). Don't place it so close to the lamp or on the dash of your car as the heat can damage your watch. Once charged it should run for weeks to months depending on which model watch you have. If it doesn't keep a charge for long it may need a new capacitor which runs $50 to $75. That is rare however. Charge it up and set it. Good luck, Michael

To change from 24 hour to 12 hour, you hold down the "Mode" button until it switches from 24 hour to 12 hour or vice versa. To change the time zone, you hold down the "Set" button until the time zone that you set it in flashes (like "LAX" on my watch). Then you press the "Receive/Start/Stop" button to choose the specified time zone you want. To set for daylight savings time ("DST" on the watch), after holding the "Set" button and having the time zone flash, you could press the "Mode" button. It will give you a few options for the daylight savings time (Auto, On, or Off). I chose the "On" option, which immediately changed for daylight savings time. If you manually want to change the time, you could hold down the "Set" button and keep pressing the "Mode" button until the time starts flashing on your watch, then pressing the "Receive/Start/Stop" button until you change it to the time that you want. You could also set the watch to beep or chime after pressing the set button if you wanted to know that piece. You hold down the "Set" button when you are done to get it to stop flashing. These instructions worked for my Timex T5G341 Universal Radio Control Watch. I hope this helps.

There is nothing wrong with your watch. Probably it's the one measuring heart rate and pulse (heart beats per second).
Use your users manual to set the watch.
By the way: Timex is one of the worst watch producers.

Press & hold set button the seconds will flash.

Press split/reset to set seconds to zero

Press mode to select hours

Press split reset to advance hour digits go through 12 hours to get to AM/PM

Press mode to select minutes


Press split reset to advance minutes

Keep repeatin the above steps to set month date day and 12/24 hour diplay

Press set when done.