without these people screwing up with trading, smart traders wouldn't be making that much profits.
You mean to say some rookie traders are losing and smart traders are making use of that ?
It does not need to be a scenario all the times, in a continuously rising market there will be no losers, one good example for that must be real estate business. In some aspects, it will be also applying to trading too
Real estate markets are nowhere
near that
If there are such markets at all (which I doubt), they would be monopolized by the government or some company (like De Beers). In fact, it is the monopolization itself that heavily contributes to the market continuous growth. All other markets where everyone has access to (provided they have enough funds, of course) are prone to pumps and dumps. And this is where would-be losers eventually meet future winners