I hope you not suggesting that we do this with our real trading? If one is using a mechanical entry, then why would this help? Wouldn't you have to wait until you got "your" signal?
If your system is based on scalping for small profit targets but using many contracts then why would this tell you anything? Do you know why 1/3 was picked instead of any other fraction? If the market was real choppy then it would tell more about the market vs. anyones mental state.
I think most traders have the mindset that they want to take money out of the markets. If they post a negative # with this exersize, it probably means they have a POS approach. I seriously doubt that it has anything to do with self-esteem. It is true that if you are losing, it doesn't feel as good as when you are winning but traders don't lose because they have a subconcious desire to throw their money away because they feel they "are not worthy" as they used to say on SNL... Inexperience can also be a big factor...
At the very least, one should reconsider their approach to the market, because the one they are using now is flawed... All of the above statements are just my humble opinion...
Exactly. A trade is composed of two transactions: an entrance and an exit. Both are important. All exercises involving random entrances are patently ridiculous.