
The Digerati Life article, "Lottery Winners Go Broke Prospect Theory", is an interesting piece of literature that deals with the phenomenon that most normal people don't understand on the surface, yet, millions of people play the stock market every day in hopes of striking it rich. It mentions some of the riches to rags stories of lottery winners that have lost all of their winnings in a short amount of time to demonstrate what can happen when you have a gambling addiction that causes you to hold on to losing stocks because you don't want to take a loss and move on.
Much like a lottery winner, you keep hoping you will hit it rich if you hold on, but end up broke in the long run. The article offers some common sense information for those that are in the stock market and making risky investments. Much like lottery winners, you can become besieged with losing propositions that leave you broke in a short amount of time. This analogy is helpful since many lottery winners invested money in risky ventures to make sure they protected their earnings only to end up broke. The same thing happens to investors every day!

