The use of decoy fires to fake lighthouses and lure ships into grounding was a common trick around the world, but the people who did this were often fishermen or depressed shore side communities who didn't resemble the classical idea of pirates. Rather these folks wanted a ship to wreck on shore, and then loot the cargo as if it had all only been an accident.

Baiting with say, a maiden on a plank that isn't plausible, the wind and the sea would make it impossible for pirates to leave bait out like that, it would drift away. And it would be impossible for them watch this bait without being obvious even if it would stay put.

What pirates did rely on was the fact that the sea lanes are much more predictable then random chance spread across the ocean. Ships want to sail the quickest route between ports. With the requirement to sail with the wind and the currents mean the quickest route is generally not a straight line, in broad strokes shipping would follow the ocean gyres and specific trade wind latitudes, but it is none the less a predictable set of belts of water. Merchants would cruise these routes because it was the best way to make money, and warships and pirates and privateers would follow.

Pirates also attacked ships at anchor in ports or along coastlines whenever possible, it was just easier.

Pirates also tended to exploit natural choke points, and historically most pirates were based on land and only sortied out after spotting a ship or maintained some kind lookout anyway. Maintaining pirate ships costs money, its much easier and more economical to operate from shore if you can. Pirates tend to be desperate, not rich, so any corner they could cut they would.

The idea of a pirate island is a pretty realistic one historically. Pirates would takeover islands that were beside natural choke points and sortie out from them in relatively small vessels, often no more then large rowboats which would then sneak up on ships at night.