This happened a lot during the recession, because people were afraid that we were going to fall into a depression and they were going to lose all of their hard earned money. Investing in only “safe” investments is a big mistake, because you could be missing out on a lot of interest and other perks that you can get.
Psychologically, you have to be a strong person in order to invest well, and you have to be able to deal with it after taking a loss, sell the stock, learn from your error in judgment, and keep playing the investment game in order to get the results you want.
If you don’t do research on your stocks, you’ll start throwing your money places that you shouldn’t, and you could end up losing a lot of money. So be sure to keep up with all of the latest investment news and learn what you need to in order to make good decisions.
This is one of the biggest mistakes that people make when investing. It’s not like a roast; you can’t just “set it and forget it.” You have to keep up with market trends, check out what the company you invested in is doing, and watch how other companies in the same sector are faring. Otherwise, you could get in a situation where the stock should be sold, and you totally miss it.