Why do most people lose money trading the news?

The news drops.
“Holy crap, that’s awesome.”
Rush in.
Alright, now you’re starting to lose money.
On-chain opportunities, many times, depend on getting in position early.
Like today: that Coinbase guy got cursed like a pig or a dog, yet he ended up doing the same as CZ—using money to buy that coin, and the price immediately took off.
Insiders may have known about it long ago.
Even more formidable players don’t even need the news. They’ll anticipate in advance which things might happen, then write a whole monitoring setup—waiting on-chain day and night, tracking changes in on-chain funds, addresses, and behavior.
By the time we see the news, the people in front have already set the trap, pumped it, and even started dumping.
There aren’t that many truly sudden opportunities on-chain.
Most of what you call “sudden” is just that you’ve only just noticed it.