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I don't know why but I was so excited when I had this amazing idea to earn lots of money online and all I needed was a $500 investment. I made a post on HF, the most socially awkward site around, and had a few people interested. I was about to get this underway so that we both had a few thousand before Christmas and could easily pay for relatives/friends presents etc but he/she got cold feet and didn't trust me enough and for some reason I can't stop thinking about it and why it failed.

TL;DR: Investor got cold feet, Now depressed about the amount of money we could have made. I mainly feel bad because I was going to secretly donate to people on both HF and SF as I see many '$100 Fine' or 'Broke and Bills to pay' with people that are being legit or someone who maybe wants a game and can't afford it. Knowing that I can't help is god damn terrible. (That was quite long).

What should I do to stop this?

Are you asking how to make money or what you should do now?
I'd just eat some ice cream and watch a movie.

It's sort of common sense (in your words) "why you failed" which in reality you didn't.
The reason I say that is because this is the internet. You where dealing with someone random.
It's internet trust. Anyone can claim who they choose to be online etc... You have to think about it from that persons point
of view as in, is this a reliable investment? can I trust this person? with $500 can I have some other investment opportunities?
Basically the fault is not on you what so ever. People tend to change their mind. Especially when dealing with someone they do not know
& Money. My suggestion is not to blame yourself one bit. You are already motivated to make money online, maybe start off small & build
your way up to $500 or stick to small investments for now until you are certain you have the opportunity to expand to a bigger budget on your own. -something in that sense-

Thanks guys, That really helped!

Well when you ask anyone to invest a large sum of money, it's always going to be something people are reluctant to do.

Well, all that happens is for a reason. So maybe that guy bailing on you was for the best.

It would have been very nice, but think about it: HF isn't the BEST place t deal with money.