[torero]

Excellent post, kiwi! It cannot be any clearer than that.

I think positive and negative reinforcement is a MAJOR factor in shaping trading behavior and many traders are not aware of it. Mixed signals with mixed rewards can produce a child with confused and insecure upbringing, he'll wander aimlessly not knowing what is the correct behavior to merge in with society. But a child with discipline has a clearly defined role and duties that secure his actions to do the right thing and possibly successful things in the long run.

In the end, with mixed rewards the trader doesn't know if it's him or it's his trading system that's the problem. Creating a trading plan and rating it help identify and root out the cause of the problem. It's the only way to move forward.