Smart Money consistently exploits retail traders by triggering stop losses and manipulating price movements. They entice inexperienced traders to buy at the top, while strategically accumulating positions at bottom levels.
When retail traders develop overly optimistic expectations about a project, believing its price will never decline, they often fall into a psychological trap. This misplaced confidence leads them to buy at inflated prices and panic-sell when the price drops. Consequently, Smart Money capitalizes on this fear, purchasing assets at a discount and driving the price upward once again.
As a result, retail traders are left regretting their premature exits, realizing too late that they sold at a loss while Smart Money reaps the benefits of their misjudgment.