2awareness Phase
Awareness Phase
The asset begins attracting attention from more sophisticated investors and early financial media coverage. Prices rise more noticeably, and a compelling narrative starts to form. Valuations stretch but can still be justified with optimistic assumptions.
Warning Signals
- Increasing media coverage
- Rising analyst price targets
- Growing retail interest
- Emergence of a compelling narrative
- Valuations stretch but defended
Common Mistakes to Avoid
- Confusing awareness with mania
- Over-allocating too early
- Ignoring valuation metrics entirely
- FOMO-driven position sizing
Detection Checklist
- Financial media beginning to cover regularly
- Financial media beginning to cover regularly
- Analysts publishing price targets
- Analysts publishing price targets
- Retail investors starting to notice
- Retail investors starting to notice
- Compelling narrative gaining traction
- Compelling narrative gaining traction
- Valuations stretching but still defensible
- Valuations stretching but still defensible
- First wave of skeptics emerging
- First wave of skeptics emerging
- Trading volumes increasing noticeably
- Trading volumes increasing noticeably