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Tuesday, December 16, 2008

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How Much Would Massive Success Really Cost?

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In our back yard is a large, gorgeous maple tree. In the summer, it's home to a number of birds.

Last year, at the end of a long branch, which extends to within 7 feet of our upstairs bathroom window, a family of robins built a nest where they lived all summer until the weather got too cold.

Both our cats just lay in the windowsill for hours all summer watching the birds come and go less than 7 feet from their window perch.

Now keep in mind that the winter was absolutely brutal. 14 feet of snow. The wind that blew like no winter that I can ever recall. Never as often and as hard as that year, it seemed. It was just miserable from mid October until April.

Yet this bird's nest, sitting on a long branch wide open to the chilling, hammering winds and cold that snaps electrical wires like tooth picks, stayed right there.

Every day, I'd look out at this nest and there it was, gripping that branch...

And I've got to believe that the robins that built the nest were no smarter or more skilled in nest building than any of the robins in my neighbors' trees.

They simply didn't want their home to fall apart no matter what. So they build it to withstand the worst possible conditions.

No short cuts. No excuses.

Tell me, what if you were to take every little task you do today, and do your absolute best? What if you were to mow the lawn as well as you could today?

What if you gave your all to every customer or prospective customer? How much more effort would it take to be the best husband, wife or significant other than you normally put in?

What would it really take to avoid eating beyond being comfortably full? To finish your homework and then read for another 30 minutes for good measure?

You know, the difference between failure, moderate success, an OK marriage, an undistinguished career and a raging success in any one of those areas is usually miniscule.

It's not that much more effort. Often it's hardly any real work at all.

Every single day I get emails from people who have given up hope of ever being really happy and satisfied in life. "I'm beyond help." "I'm happy that you're doing this work for other people... Too bad it can't help me."

They read the articles. They may even buy our tapes, and either don't listen to them as prescribed, or when changes do begin either with positive progress or with negative tension created by the rapid changes happening, they quit because the change is uncomfortable at first.

"Whoa! That's not me! Who am I kidding? Better slow down."

The bottom line is, change is always wanted on some level but hardly ever completely enjoyable at first.

If there is one thing that you MUST beat into your head every day like a mantra is that success at anything is simple. It's so simple!

It's just a matter of repetition of little thoughts and little actions.

For example, to allow yourself to do shoddy work once and then again is to create momentum. A third time is like an avalanche...

Hard to stop it. The fourth time is virtually guaranteed.

When the brownies or chips and soda make it into the shopping cart every week, that's it. Run past that aisle. Achieve a little success. Get a little momentum going the other way.

When the sitcom wins out consistently over the homework or baseball practice in the back yard, then you are creating a rotten habit, which develops a character. Done long enough, and that becomes who you are...

But thank God that with just a little effort we can change those things by making only slight direction changes.

The nest in my back yard is now housing a new family of robins who didn't have to do a thing. They just moved in. All the work was done already. They just hung a few pictures, threw out a "Welcome" mat and called it home.

And once you change the momentum of any downward slide you may be in, it's deceptively simple to stop the slide, make a few right decisions and your entire destiny can change.

If I was to get in my truck right now and drive due west for just four days, I'd be in North Bend, Oregon. But if I was facing only about 5 degrees to the south, in the same four days I'd end up in Los Angeles, California... about 960 miles away.

Now hold your thumb and fore finger about an eighth of an inch apart. Go ahead. Do it. You see, most of the time the difference between horrible, devastating failure and massive, glorious success is only that far apart.

In the next seven days, will you have chosen to stay on course?

Keep reminding yourself of how important each hour and each decision is. Do that every hour today, and I guarantee that no matter what doesn't go right, you won't be too terribly bothered by it.

And isn't that the direction you wanted to go in today?

[Source: www.thinkrightnow.com, by Mike Brescia]


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Tuesday, December 9, 2008

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Put Some Fire in Your Desire

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One of the keys to success is staying motivated because it is being motivated that keeps us going out the door every day to change the world and reach our destiny! It is our desire for a better life, for change in ourselves and others, and for personal growth and fulfillment that moves our mountains! Desire!

Desire sure is a word with much more richness to it than the word "want" though they are essentially the same. "Want," though, sounds like you could take it or leave it. "Desire" says, "I have to have it!" Desire, is "want" with a fire under it!

Unfortunately, we tend to ebb and flow from want to desire, even with the same goal! One day we may be passionate about building our business or growing our relationships and then, the next day, we find ourselves simply in the "want" camp again.

The key to keeping on is to re-light the fire under want so it roars into a raging fire of desire! Then, and only then, will we see the passion needed to be tenacious pursuers of our dreams! Keeping the fire lit is what will see you through the mountains and valleys of life and the journey you are on to your success!

So what do we do? We light the fire! Here are a few thoughts to help you build the fire of your desire!

The wood:
Keep a clear mental picture of the goal. This is imperative. The picture of the goal is like the wood in a fire. It is the raw material. Know what your goal is and what it looks like.

The fuel:
Keep a list, if simply just a mental one, of all of the benefits of pursuing and reaching your goal. Make them as "sense" oriented as possible. "See" the benefits. "Hear" them. "Touch" them. This is like the fuel that we add to a fire to get it going. Now all we need is a match.

The match:
Keep yourself active! This is the match: Action! Even when you don't feel like it, get yourself to act and soon you will see the fire burning because you have again ignited the dream! The more desire you have the more the fire burns.

Eventually the fire will begin to die out. Here is where you throw the wood on again, pour on some fuel, and if need be, strike another match.

I would encourage you to not let the fire go out though, because it is easier to continually throw wood and fuel on an already burning fire than it is to start one up again!

[Source: www.chriswidener.com, by Chris Widener]



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Thursday, December 4, 2008

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Coping with Losses (Overcoming The Fear of Losing Money)

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In modern society, money seems to be taking on the specter of the major motivating force for human actions.
Without money, a person's quality of life can be stunted and leave a person standing on the outside of society.
Money-and the successful pursuit of it- may be the new religion.

The paradox of being a trader is that you do it to build wealth, but to really enter into the game, you need to already have some wealth.
Not only that, for money to not ruin the chances of making your trading capital grow, you need to not need it......
Say what? Let me explain.

To be able to trade effectively, a trader can't be afraid to lose money. You see, you will have losing trades and you will go through periods when you will see your trading account dwindling. It comes with the territory. Losing is just part of the reality of trading on probability.
Over time, even the best prepared and most favored fall victim to probability. Just as the New England Patriots.
And trading is all about probabilities.

The fundamental concept of trading is that a trader, over time, will have more winning trades than losing trades and that the margins on the winning trades are higher than the margins on losing trades.
Over a set of trades, top traders expect about a 65-75% win to loss ratio. That means that at least 25% of the time, even the best traders have losing trades.
So, the first thing to accept is that there will be losses.

Most people who are aggressive enough to be attracted to trading have been successful in other aspects of their lives. This may often mean that they are used to winning or at least normally not failing.
From our earliest days, we are taught that losing is equivalent to failure. That you have done something wrong. Losing becomes a deeply ingrained negative symbol.
Often times, it is accompanied with some sort of negative consequence and negative emotions amplify the impact of the concept of losing.
Unfortunately, not many people learn to see a losing situation as an opportunity to learn and improve.
But in trading, you not only have the deep seated connotations of losing but also the emotional impact of the tangible loss of something valuable-money.

Because money has such power, traders must apportion an amount to trading that won't make a significant impact on the life style, financial obligations or future plans of the trader.
That is to say, the trading account should be monies that can be lost without adding any stress to the economic situation of the trader.
If the total trading account were lost, it would have little to no impact on the economic well being of the trader. And thus, little emotional impact.

Because trading is a long haul proposition, traders need to be conscious of the fact that capital conservation is part of the strategy of keeping in the game and exposed to the probabilities.
As a result, most traders are very conservative with the money they don't really need. (the trading account).
It's common to hear that most traders have a drawdown limit of 20-30%. This means that if the account balance decreases 20-30%, a trader will stop trading and return to the drawing board.

Normally, the trader will need to tweak the trading system or take a hard look at how the trader is implementing the system.
Not only do traders use drawdown limits on the trading account, but also they have limits on how much money can be traded on any one trade.

For example, most traders won't trade more than 1-5% of the trading account on any one trade. This allows a trader to absorb the inevitable losses and still have resources to continue trading. Remember, trading is about being correct most of the time, not all of the time.
Losses will happen but they are quickly closed out to minimize impact on the cumulative number of trades.
To sum it up, traders need to totally negate as much as possible the emotional impact of losing money. Proper training of the subconscious mind to put losses in the right perspective can be extremely helpful.
In addition, traders need to set up rules and procedures to limit the effects of the inevitable losses and play to stay in the game.
To use the baseball analogy, being a trader is about hitting for average and not about hitting home runs.

[by Norman Hallett, CEO of Subconscious Training Corporation, Makers of TradingMind Software]


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Wednesday, November 26, 2008

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The Dangers of Being Off Balance

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It's easy to get out of balance during particularly hectic times such as the current holidays. Being off balance can be exhilarating if it's just for a few moments such as when you're falling in love, receiving an honor or recognition or simply enjoying a real roller coaster or carnival ride.

Being off balance longer than that, however, can be dangerous to our relationships, our physical beings or our careers. The best way to gain and retain a sense of balance is by setting goals and sticking to your plan.

Having a set of goals to refer to regularly will help keep your feet planted on the ground and give your mind a focal point to bring you back to earth when something sidetracks you (either something good or something bad).

A well-lived life is a balancing act. If you're out of balance, it will show in your demeanor. You won't handle personal or business situations as best you can and that will eventually have a negative affect on your bottom line and the level of enjoyment you have in your everyday life.

Don't risk the detriment of being out of balance long term. Take a few moments each day to consider what might be pulling you off the course you've set for yourself. Then, schedule (and take) the actions necessary to even things out.

[Source: tomhopkins.com, Tom Hopkins International]


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Tuesday, November 18, 2008

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Dream Insights

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A dream is simply something that you want. And where do dreams come from? You make them up. Some are based on needs such as putting healthy food on the table or sending your kids to a good school.

Some of them are based on desires such as writing a book, buying a home, or traveling to an exotic location. But by far, the most profound dreams are those that are the expression of your life's purpose.

* You have to have a dream to have a dream come true.
* Trust your intuition and follow your heart.
* Every resource you need is available to you.
* Believing in your dream is an essential component.
* There are signs showing you which way to go. Learn to read and act on them.
* There is often lag time between imagining your dream and making it happen.
* You have the ability to make your dreams happen but it will require your willingness to do whatever it takes.
* On the other side of fear are great lessons. Stay more committed to your dream than to your doubt.
* As you complete one dream, it's time for another. Don't ever be afraid to cross the finish line. There are always more dreams available.

A Visualization Exercise: The Sliding Glass Door

Imagine that you're standing with your nose pressed against a glass door, so close to it that your breath is steaming up the glass. As you wipe away the steam, you see an ideal place on the other side of the glass. You see your dream. Feel your feet standing on the floor on your side of the glass door, the other side of your dream.

You're standing in the "Where I Am Now," where you live with everything that's happening in your life, including your attitudes and beliefs. Looking through the glass door, you see the beauty on the other side. Is this where you want to be?

Grasp the handle and slide the door open. A gentle, warm breeze comes wafting in, and there's a delicious smell in the air. As you gaze around, you see every­thing on the other side that you want, everything that's in your dream, and everything you're committed to having.

Your family is there, too, your friends, your dream home, your dream life. All the elements of your dream are there, right on the other side of the threshold.

Notice where you are versus where you want to be. All you need to do to get to the other side is make the commitment and step across. Ask yourself, "Is this what I want? Will I commit to this?" If the answer is "Yes," lift your foot and step through.

[Source: www.marciaw.com, by Marcia Wieder]


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Monday, November 17, 2008

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Risk Management

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The answer to the question, "Is Managing Risk Optional?", given by most people and certainly most traders and investors is "Absolutely not! Of course you must manage risk in order to potentially be successful," they say. And they are absolutely right! Why then do few traders and investors do a good job of managing risk?

Managing risk is an easy concept to embrace intellectually, but not emotionally. We all tend to want to risk too much on any given trade, or worse yet, we'll tend to have that "home run" mentality, always looking for that one great stock that will make us wealthy. We end up committing too much capital per trade which sets us up for a string of losers that could do serious damage to our account. We do this because we fail to comprehend that any system or method of trading will suffer losses from time to time, no matter how good the system or method - alas, the "Holy Grail of Trading" does not exist.

Another tendency that most of us have is to want to trade on a regular basis every day, and every week depending on our time horizon, without any regard to whether or not there are any good trade set-ups offered by the market. One of the most effective forms of risk management is to avoid trading when there are no potentially high probability set-ups available.

Is managing risk optional? No. For stock traders, following these two simple rules could potentially mean the difference between outstanding returns and unnecessary losses*:

Rule#1: Risk no more than 2% of your account on any one trade.
Rule#2: Be patient, be selective and wait for the good trades.

[Source: Risk Management in Trading, by Bill Poulos]


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Wednesday, November 5, 2008

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Why We Avoid Resistance

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Princeton University's WordNet 2.1 defines resistance as the action of opposing something that you disapprove or disagree with. If you make a short list of things you like, relish or love, I doubt the word resistance will show up on your list.

Resistance isn't something that most of us cherish or are drawn to - at least personally. True, some may enjoy observing resistance as a third party to it - which could be one explanation for boxing, professional wrestling and the success of the Jerry Springer Show - but few of us look for or enjoy resistance.
Which is why we so often choose to avoid it.

Here are seven major reasons why people tend to avoid resistance.

We are taught to avoid it. As kids, we are taught to agree - or at least get along - with our teachers, our parents, other authority figures and other kids (or at least not make our disagreement or disapproval public), and while the purposes for these behaviors might not be completely about resistance (they may also be about respect among other things), most people seem to connect the lesson to avoiding resistance.

In fact, there is a common phrase that reinforces this teaching - "taking the path of least resistance."

We don't want to be called names. Extensions of the "that's what I was taught" reasoning are the thoughts that "I don't want to rock the boat, or cause a scene." If you avoid resistance the boat may stay stable, but if you do confront issues, propose potential changes or just not agree with someone you might be called names - like "rebel" or "troublemaker."

We think resistance is a bad thing. If you think all mushrooms you see in the woods are poisonous, you'll avoid them. If you think all Clint Eastwood movies are Westerns and you don't like Westerns, you'll avoid anything starring Clint. Likewise, if your belief is that resistance is inherently negative, you'll tend to avoid it.

We take it personally. If someone resists your idea, you might take that resistance as a personal attack. Have you ever been told your idea was stupid or that your approach wouldn't work? Even if the comment wasn't a personal attack, it often leaves us feeling that way. Since most people don't like to be attacked (even verbally), logically, you can avoid that feeling by avoiding the resistance.

We don't know how to deal with it. If you have long avoided resistance, you might not know how to deal with it in a positive and constructive way. Resistance is like many other things, if you don't have knowledge and the proper tools, you might shy away from it.

We think it will lead to conflict. For many people resistance and conflict are synonymous. And if you don't like conflict and see it as the necessary outcome of voicing your resistance; you'll likely avoid the resistance in the first place.

We think avoiding it is the easiest approach. Humans are basically lazy. Since most people consider "the path of least resistance" to be the equivalent of the "easiest path", that is often the one selected. It only makes sense, after all, to avoid something we think is bad and that would be difficult to do something about anyway, right?

So is all of this avoiding such a bad thing?
Generally, to be blunt, yes.
Why?

Resistance promotes growth. In the physical world without an opposing force (resistance) we couldn't strengthen our muscles.
In the interpersonal world, resistance is a sign of energy; energy that can be used in positive ways, but only if it is explored.
If no one disagrees with a new idea (offers some resistance) will a better idea be found?
Without opposition (or resistance) how many new products would be created?
Without some admission of problems (a sign of resistance) will teams or relationships ever be revitalized?
Ask yourself which of the excuses outlined above have you used in the past, and how would you benefit from overcoming your urge to avoid some resistance today.

[Source: kevineikenberry.com, by Kevin Eikenberry]


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Thursday, October 30, 2008

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Developing Positive Beliefs

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Belief is a funny thing. I used to think that it was entirely objective. The mind receives information, processes it, and creates the appropriate belief. There is no room for choice — your beliefs depend entirely on the information you’ve absorbed. If this were true, it would be ridiculous to judge someone for their beliefs. After all, they have no choice in the matter!

While I still believe that people shouldn’t be judged for beliefs, time and reflection have reversed my opinion on the matter of choice — all belief is rooted in choice. But why? How can something as important as belief be subject entirely to whim?

The reason is uncertainty. Every piece of knowledge has inherent uncertainty. Our tools for measuring and interpreting information are inaccurate. Although some areas (like science) provide a high degree of certainty, others (such as morals) provide virtually none. Even the most established facts could be (and often are) proved false by new discoveries.

Unlike knowledge, beliefs don’t have the luxury of uncertainty. You either believe something or you don’t. In order to go from uncertain knowledge to certain belief, the mind has to fill in the gaps. It has to look for additional information and draw conclusions. This is where choice is used to develop and reinforce belief. As soon as you choose to believe something, your mind goes to work gathering information that supports your rationale.

This is why positive beliefs are so important. It’s impossible to know for certain if your efforts will be met with failure or success. No matter how confident you are, it’s possible that outside forces will ruin your plans. You make a conscious decision to believe you will succeed or that you will fail. You can always rationalize either belief.

Consider the example of the site: PickTheBrain.com. If I choose to believe that it will fail, I can instantly drum up a list of facts to support that belief:

Other sites have grown more quickly I started blogging 2 years too late I lack formal training and experience as a writer Many people aren’t interested in intellectual topics Blog traffic doesn’t monetize well. On the other hand, if I choose to believe that PickTheBrain.com will succeed, I can create an equally compelling list.

The site has several thousand subscribers Visitors have responded positively to the content. Numerous articles have become popular with social media. Traffic has grown continuously. Blogging is gradually becoming mainstream. Every item on both lists is true, but my belief determines which set of facts I focus on. When I lose confidence and dwell on failure, I come up with even more facts to add to the failure list, strengthening the failure belief. When I choose to believe in success, positive facts emerge. The belief you choose to accept will become stronger over time through this pattern of self reinforcement.

Believe You Will Succeed

Although positive belief doesn’t guarantee success, I doubt that success is possible without it. Not because of the belief itself, but because of the chain of thoughts and actions triggered by a positive belief. When you believe you can succeed, your mind overcomes obstacles. You solve problems creatively and are eager to take action.

How do you control your beliefs? The key is realizing that it’s possible. You don’t have to a slave to every thought that pops into your head. If you want to believe you can succeed, just start doing it. When negative thoughts enter your mind, recognize them for what they are and discard them. Don’t be oblivious to negative feedback. Rather, use it constructively and refuse to let it dominate you. Consciously remind yourself of the positive and allow the negative to roll off your back.

There really isn’t a downside to believing in yourself and believing the best about others. You may not achieve your original goal and might get burned, but you’ll be better off than if you’d assumed the worst from the start. Believing you will succeed will also make you happier. Although it may be partly delusion, the same is true of the failure belief. You have to believe in something, why not believe that your hard work is contributing to something positive? Why not believe that your biggest dreams are possible?

It may be idealistic but it’s preferable to cynicism.

[Source: PickTheBrain.com]


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Monday, October 27, 2008

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10 All Natural Ways to Stop Feeling Depressed

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Life is a drag.
What's the point of anything?
I'll never be happy.
Do any of these gloomy thoughts sound familiar? It's likely they do. The occasional case of the blues is perfectly normal, but that doesn't make dealing with it any easier. If you allow them to, negative thoughts can fester and lead to serious depression. That's why it's important to take action early to bust yourself out of a slump.

While these suggestions won't eliminate your problems, they can help you break a negative thought pattern and stop feeling depressed. If you think you might have a serious mental health problem, don't hesitate to see a medical professional.

1. Understand the emotional cycle - Life is an emotional roller coaster. Some days you feel like nothing can stop you. Other days you feel utterly hopeless. Most of the time you're somewhere in between. Understanding the pattern of positive and negative emotions will help you put your feelings in perspective. Next time you feel down, just remember that it's a natural emotion that will inevitably pass. Knowing that a feeling of depression is only temporary makes it less dreadful.

2. Spend time with positive people - Nothing affects the way you think and feel more than the people you interact with. Thoughts (both positive and negative) are contagious. If you are surrounded by negative people, it's only natural that you'll start to think and feel the same way. To improve your outlook on life, spend time with positive people. Search them out and try to understand the way they see the world. Chances are their happiness will rub off.

3. Reflect on past success - In the wake of a colossal failure, it's easy to forget everything you've ever done right. Take a few minutes to remember your past accomplishments and build yourself up. What made you successful before? What are your strengths? Frequently, this exercise will build self confidence, help you figure out what went wrong, and generate ideas for success in the future.

4. Focus on gratitude - It's human nature to measure ourselves against those ahead of us on the social ladder. Studies have shown that people care more about being richer than their friends than actually making more money. When you consider everything good in your life and compare it to the problems of less fortunate people, the issue that's making you depressed won't seem as serious.

5. Change of scenery - One of the best ways to change the way you feel is to change your environment. When you get in a slump, you start to associate your problems with everything around you. It can get to the point where your environment is a constant reminder of your problems. This can be a dangerous cycle. The solution is to change things. Change doesn't have to be radical. Cleaning up, adding more lights, or including pleasant decorations can completely change the mood of a room.

6. Break your routine - Going through the same routine, day after day, can be monotonous and depressing. It often leads to getting caught in a rut. To get out of it you need to temporarily change your routine. If you can, take a day off from work. Do something you don't normally have time for or something you've never tried. In the long run, taking a day off every now and then to get out of slump will make you happier and more productive.

7. Interact with animals and nature - It's funny when you consider how humans put so much importance on their own tiny problems. Animals don't think this way. A little bird doesn't mope around because it isn't an eagle or because another bird beat it to a tasty seed. Animals live in the present moment and they show love unconditionally. Observing and interacting with them will help you get over your problems.

8. Get moving - As Johnny Cash famously suggested, "Get a rhythm, when you get the blues." Moving to a beat makes everyone feel better. The same is true for movement in general. Hitting the gym or going for a walk will help you shed the lethargy that comes with feeling depressed. The more enthusiastic your moments, the better you will start to feel.

9. Think about the big picture - As Carl Sagan made evident with the Pale Blue Dot, we're insignificant creatures living in a vast universe on a tiny planet. In the long run, everything we do will probably be forgotten. Some might find this depressing, but it shouldn't be. It means that all our problems are illusory. In a million years no one will remember what you did or didn't do. What matters is the present moment and enjoying every second of life that we're blessed with.

10. Do something to help yourself - Above all, the best way to stop feeling depressed is to take action. What is your biggest problem? How can you alleviate it? Once you decide to stop moping and start moving forward you won't have time to feel depressed. Action will occupy your mind and give you something to look forward to. Once you get some results, you'll build momentum and positive thinking will keep getting easier.

[Source: Unknown]


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Wednesday, October 22, 2008

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The Diligence Dividend

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As I study high performers in every field of endeavor, I am constantly struck by the fact that these people may only perform slightly above average but achieve and are compensated many multiples above normal.

I have a friend with whom I have consulted regularly for five years. In a real estate market where the average realtor sells one house a month, my friend averages closing a little more than one house each day. He earns 30 times what the average realtor would earn.

As much as I respect him, I would have to say he is not 30 times better, but he does exhibit a trait that I believe makes his phenomenal success possible. My friend is diligent. Diligence is the habit of performing normal tasks in an extraordinary fashion.

I am a huge fan of baseball and, most particularly, the St. Louis Cardinals. Those of you who live in other parts of North America and around the world can no doubt substitute a player on your team throughout this analogy.

One of my favorite players exhibits diligence every day in the way he lives his life and in the way he plays baseball.

Even great baseball players fail to get on base more than they succeed. Most often, batters are a victim of an infield ground ball. These grounders are routinely and easily scooped-up by the opposing team, resulting in an easy out at first base.

My favorite player hits infield grounders just like everyone else in the Major Leagues; however, he runs to first base full speed with a 100% effort each time knowing that 99% of the time he will be thrown out.

He also knows that once a year, one of the opposing infielders will fail to cleanly pick up the ball and, due to his extra effort, he will be safe on first base instead of being the victim of a routine out.

If this only happens once a year, and once every five years it results in winning a game the team would have otherwise lost, in a 15 to 20 year career, winning four extra games throughout the two decades will, once in his career, result in the St. Louis Cardinals making the playoffs and winning the World Series when they otherwise would not have done so.

Diligence comes into play because no one knows which of these thousands of routine grounders is going to result in a trip to the World Series. A champion plays like a champion all the time. He never takes a day off or even an inning off.

As you go through your day today, look for ways to do the little things well, and you will find that the big things take care of themselves.

Today's the day!

[Source: jimstovall.com, by Jim Stovall]


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