Bonkers: Your procedure is correct. All trailer manufacturers I know of, advise that to minimize a tendency to "fishtail", approximately 10% of the total combined trailer and load weight should be on the hitch. So if you have say a 3200 Lbs. car on a 3000 Lbs trailer you should position the car so approximately 620 Lbs. is on the tongue at the point where it attaches to the hitch ball.
This is easy to confirm with a scale. At home not many of us have a scale that goes this high. This is how I did it: Make sure the loaded trailer is level, parked on a level surface with the wheels securely blocked before beginning. I used a regular bathroom scale with a 4 ft. long 4" by 4" placed horizontally, one end on the center of the scale and the other end on center of a narrow stationary object of the exact same height as the scale. Keeping the trailer level, if you apply the weight of the trailer tongue (You want to be where the ball connects, not at the tongue jack) exactly 1 ft. (1/4 the length) from the stationery support end of the 4 x 4, the scale will read at 1/4 the actual tongue weight on the scale. Therefore to get 620 Lbs as in our example above, you would want to read 155 Lbs. on the scale. Obviously, observe all safety precautions, make sure your trailer is level and the wheels are securely blocked and be sure there is weight on the tongue before disconnecting it from the ball on the tow vehicle or the tongue will go up in the air until the tail of the trailer rests on the ground.
Another consideration obviously, in the example given, is that the hitch on the tow vehicle has to be specified capable of supporting well in excess of least 620 Lbs. of vertical load as well as pulling the combined weight of the trailer and it's cargo. I wouldn't use anything less than a class IV or V heavy duty hitch with weight distributing bars when trying to tow another car on a trailer. But that's a whole other story.