In preparation for the Enquirer's Financial Independence Day event, we are sharing stories from typical investors who have made serious investing mistakes. This is third of a series of five. To register for the Jan. 27 financial planning event at the Northern Kentucky Convention Center, visit www.cincinnati.com/fid.

        Mistake No. 3: Not knowing what you're buying.

        Call it acting on a hot tip, or not doing enough research. Danny Meyers said he's learned his lesson and will never invest that way again.

        His first blunder was Premier Laser Systems, a recommendation of his broker. Its products were medical lasers, including a dental laser that was supposed to replace a traditional drill. He bought about $1,000 worth of stock.

        He had done some research, but only minimally online. The few research reports he'd read were favorable. But then the company was accused of misstating its earnings. It went bankrupt and was delisted from the Nasdaq National Market. In September, the Securities and Exchange Commission charged its chief financial officer with securities fraud.

Meyers

        “The company just went away,” said Mr. Meyers, 26, the co-host on Q102's (WKRQ-FM's) morning show. “It just went bust.”

        The Mount Washington resident said he's learned that if he doesn't understand or use a company's product, he won't buy its stock.

        “If I can't touch it or see it, I just won't buy it anymore,” he said.

        That lesson was reinforced after he bought $1,000 worth of Insweb Corp., an insurance Web site. After getting in at $13 a share, his investment is worth only about $1 a share.

        After the stock price started to have trouble, Mr. Meyers said he went online to test the product. He found the site difficult to use and unable to live up to its promises.

        “If only I had tried it, I never would have bought it,” he said.

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