Recently, I came across a story that is both sad, but worth sharing in case somone else might learn from an investor’s mistakes and avoid repeating them. Here’s a summary of the story:

A investor was convinced by a coworker to invest in cryptocurrency, but unfortunately, they ended up losing around $20,000 before deciding to sell and cutting their losses. Then, they took the remaining money and put it into a popular stock (LCID), only to lose an additional $12,000.

In just two months, they blew three years worth of their savings.

Here are the lessons for readers to learn:

• Do not invest in things that you don’t fully understand.
• Just because someone has a good track record doesn’t mean you should blindly trust them with your money. Do your own research and carefully consider your options before making investment decisions.
• Slow and steady, and thinking long term wins the race.
• Behavior matters a lot. Morgan Housel, the author of the book “The Psychology of Money: Timeless lessons on wealth, greed, and happiness”, said that, “Doing well with money has a little to do with how smart you are and a lot to do with how you behave.”