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Psychology

Five-Minute Rule

A forced pause between wanting to make a trade and making it. In the interval, the dopamine peak passes, System 2 deliberation re-engages, and the chart often reveals whether the move was real or manufactured. Disproportionately filters bad setups because bad setups rely on sub-5-minute urgency to defeat analysis.

See also
Psychology Speed Trap The compressed decision window in memecoin trading that disables System 2 deliberation. Pump.fun bonding curves can graduate in minutes. Platforms compete on execution speed as a marketing feature. The faster the rail, the less deliberative capacity the trader gets before the buy fires. → Psychology Implementation Intention A pre-committed if-X-then-Y plan (Gollwitzer, 1999). Delegates action control to a situational cue, removing real-time deliberation from the requirement. Meta-analysis across 94 studies found effect size d=0.65 on goal attainment. The structural mechanism behind every effective trading defense. → Psychology Chair Test A pre-trade mental simulation: would my sober self, sitting alone tomorrow morning, away from CT and the live chart, take this trade? The three elements do distinct work — sober removes the dopamine state, alone removes the crowd's pressure, tomorrow removes time urgency. →
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