when it works, it works as self fulfilling prophecy when it doesn't work - it doesn't as it takes only one trader that thinks otherwise and has enough power to move the markets
The problem with news trading that you can't see on demo is the real market liquidity. When the market moves fast, you won't get filled with your orders on real live account or you will get huge slippage.
imho.. It takes only 1 large enough trader with another opinion regarding the price to move the markets.. So a breakout can be 'false' and then counts as a trap, or may be 'true' and then counts as a real breakout! So the whole sum of traders ...