$COA Why do most traders lose money (and how smart money makes a profit)

Most traders lose money because they trade on emotions, not according to a plan. They buy when the price is already high and sell when they are overwhelmed by feelings of fear. Instead of waiting for good opportunities, they chase every movement and end up making hasty decisions.

Another major reason is poor risk management. Many traders risk too much money on a single trade, hoping for quick profits. One bad trade can wipe out their accounts. Smart money focuses on protecting capital first. They take small, controlled risks and stay in the market longer.

Most traders also ignore patience. They feel the need to trade all the time. Smart money waits. They allow the price to reach their levels and only enter when the setup is clear. Fewer trades with better quality usually lead to better results.

Following the hype is another trap. Retail traders jump in after hearing the excitement on social media, while smart money has already entered earlier and is preparing to sell. Smart money buys quietly and sells into the hype. In simple terms, most traders lose because they rush, overtrade, and ignore risks. Smart money wins by staying calm, managing risks, and waiting for the right moments. Success