Spending as much time on the internet as we do here, we couldn’t help but come across the biggest craze to hit the internet since that cute Charlie Bit Me video.  If the suspense is killing you, we’re talking about none other than the video for Gangnam Style (OGS).  In a matter of just over two months this music video has garnered well over 220 million views (70+ million of which were hit the first day it was released) and is awkwardly galloping over other videos to become one of the most popular videos on the planet, already hitting number 1 on the Youtube Top 100 and on pace to surpass Carly Rae Jepsen’s Call Me Maybe in number of views (it already has more likes at this time of writing).

So, with so much hype behind the song, the artist and the dance, we couldn’t help but toss in 3 lessons for investors, Gangnam style.

Read on to find out more.

#1 By the time it becomes news, a lot of people already probably know about it

Even though news channels and media outlets keep a close ear to the ground, there are always those who are ahead of the crowd when it comes to finding out information.  OGS was already viewed well over 5 million times before a search was done for it on Youtube, over 9 million times before it was embedded on Facebook and over 70 million times before someone watched it on a mobile phone device.  Of course all of these events took place on July 15, 2012. When you catch word of a news release about a company’s newest and latest product, it’s a safe bet that somebody is already acting on it before you even know about it.

#2 When demand goes parabolic, don’t try to pick a top

Seeing so many people get behind the craze so quickly, there are those that are already saying this is a passing fad, that OGS will have its 15 minutes of fame and the world will predictably move on.  The numbers, however, paint a different picture.  If these skeptics were traders, they would be thinking that now would be the right time to go short, however a second look at the charts and stats might be enough to save them from having their trade explode. If the traders were “technical”, they might look to the charts of the viewing stats for the video and see an exponential move higher, a sign that emotions are still running high.  How long can this go on for? The answer is that it’s anybody’s guess, and as any experienced trader can tell you, “the market can be wrong longer than you can stay liquid”.

What separates traders from talking heads is the fact that they put their money where their mouth is.  When an event is happening, or even might happen, speculators are out there putting dollars and cents behind a version of events that has yet to materialize in order to answer a simple question, how can I make money from this?  Seeing the craze that OGS has stirred up, businesses and industries have also started to tap into the Gangnam madness, with one day tours of Gangnam district already springing up and professional instruction of the galloping dance sure to follow closely behind. Of course, with Halloween right around the corner, the odds seem good that there will be a lot of Gangnam style costumes inspired by Psy & company’s outrageous wardrobes, including the signature tuxedo jacket . Check out the chart below of searches for “costumes” that are just about to start their seasonal spike.

*Note: This post is for educational purposes only. Nothing should be considered a recommendation to buy or sell any stock, security or tuxedo jacket. We strongly recommend that you consult with a professional broker or financial planner before you make any investment decisions.