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A Life Lesson


 

Why you should embrace failure – by Michael Yardney

Everywhere you look these days, people’s achievements are being celebrated, whether it be in the papers, among our family and friends, or on social media.

And why not?

Success is a wonderful thing and worthy of celebration, but so too is failure.

OK, so hear me out on this one.

Failure gets a bad rap and most of us go to great lengths to avoid messing up.

But here is the thing: we are all going to fail at some point — whether it be a succession of small errors or one monumental disaster.

The sooner we embrace failure as inevitable and arm ourselves with a few tricks to handle it, the better off we will be.

Here are four good reasons to celebrate failure:

 

  1. It builds resilience

little-treeTalent is an important component of success but it is not the only one.

Not by a long shot.

Hard work is also extremely important — as is discipline and focus — but I would also put resilience up there among the most important predictors of success.

Many would-be investors dream of financial freedom and start the journey by reading all the right books, researching the market and lining up their financial ducks in a row.

Then they hit a hurdle. Cash flow tightens or they miss out on a property. It all gets too hard and they give up.

Resilient types know how to take these setbacks in their stride.

Most often, this resilience has been built from a young age, where their parents taught them how to fail and pick themselves up again.

If you were a child who dealt well with failure you will most likely be an adult with the internal reserves to handle setbacks.

 

  1. It makes us more human and likeable

It’s what psychologists call the pratfall effect: when someone we perceive as competent makes a mistake, we often like that person more because it shows they are human, too.

Being vulnerable at certain times — failing, asking for help — is a necessary part of life and it helps us to bond better with others.

When we fail and we need other people’s help, we are able to cement relationships with family, friends and the community that sometimes we didn’t realise were even there.

Failure can open the door to better relationships with those around us because nothing puts things in perspective, or keeps our egos in check, quite like a run of bad luck.

 

  1. It makes us better at what we do

In my time in the property industry, I have seen many people fail at investing only to return to the game successfully, many times over.

When we fail it gives us a chance to reflect on our business and what went wrong so we don’t make the same mistake again.

We learn and adapt, and hopefully we grow from the failure.

It is amazing so many of us are afraid of failing when it is really one of the best ways to learn.

 

  1. We ask more questions

questions-blogWhether you choose to own up to your failures or hide them from others, they are a part of life.

If you learn to accept the possibility of failure, and not be so terrified of saying the wrong thing or messing up at work, then you will be a lot bolder.

This will mean you will ask questions without being afraid of looking stupid.

You will take calculated risks without being overwhelmed by fear and you will not be concerned what other people think and will therefore listen more to your own gut instincts.

And that will make you truly successful.

 

Guest author:

Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog. 

 

Four Important Trading Insights

Interesting piece from Dr Brett Steenbarger

…..Here are a few valuable insights I’ve gathered from my recent work with skilled, successful traders:

1)  What you trade is as important as how you trade:  The successful traders are trading instruments that move in meaningful ways and that capture their best ideas.  That means trading instruments that show the right kind of movement, and it means expressing your ideas through positions that offer the best risk/reward.  The successful traders have many ways to capture ideas:  many time frames, many instruments (stocks, futures, options), many markets……

More here – TraderFeed

The Guide To Happiness

From loyal reader Roy R

 


 

The Confusion Between The Market, The Economy And Politics

One of the mistakes I see traders make is the confusion between the market, the economy and what politicians say about the influences on both. Too often traders attempt to trade the economy as opposed to trying to trade the market and the price action that is unfolding. At present we have a classic textbook example unfolding on the Korean Peninsula. One would think that with the current Twitter war being conducted by the orange man baby with a comb over and the chubby man baby with the troll doll haircut and the accompanying breathless hyperbole from our politicians along with our slavishly ignorant news services that the world or at least  North and South Korea were about to spontaneously combust. If I were attempting to trade this instead of the market then I would automatically assume that I should be short South Korea, after all who wants to be long a country that might soon be a smouldering ruin. Unfortunately the market doesn’t agree with that presumption Below is a chart of the Kospi – on it I have marked each of the North Korean missile tests that have gotten everyone feeling all a quiver in their nether regions. On those occasions when the market was closed for the actual launch date I have marked the next trading day.

Kospi

As you can see the Korean market doesn’t seem to really give a stuff about North Korea’s attempt to build an ICBM nor do they seem to care that their loony neighbours might stick a nuke on the top of it. The Kospi is one of the best performing indices of the year as can be seen in the chart below.

rank chart

The moral of the story is trade what you see not the story you are told or the story you create in your own head.

The Secret Power of Persuasion by Michael Yardney

We’ve asked Michael Yardney to write a special guest column today. Michael has been a friend of mine for many years and is our ‘go to’ guy when it comes to property. I’m sure you’ll find his insights powerful. Now… over to Michael.

 

Have you noticed how people who are successful in most walks of life usually have the gift of being good negotiators.

In fact they are more than that – they are good persuaders.  They have the ability to influence others to go along with their point of view.

We’ve all heard of win/win negotiation, but let’s be honest….in many of our negotiations we would really like a bit more than win/win.

When you buy your next car, you’d really like the negotiations to end up favouring you and not being an even handed win/win?

Think about it…when buying a property, or any other big-ticket item, we usually want to buy it at the best price possible, while the vendor wants to sell it for the highest price they can achieve.

Good negotiators have developed he art of being able to influence to see things their way. They know how to get others to do things they want to get done.

They seem to have an innate gift of understanding others needs and wants and finding a way of delivering that within in the bigger context of getting what they themselves want.

InfluenceA number of years ago I came across a powerful book, Influence – The Psychology of Persuasion, in which Robert Cialdini outlines six universal principles of influence that he discovered as he studied what made people do the things they do, in his role as a professor of psychology.

Let’s look at these in more detail…

 

  1. Reciprocation

We were all taught that we should find way to repay others for what they do for us. That’s only fair – most people will make an effort to avoid being considered an ingrate or someone who does not pay their debts.

Cialdini explains how in the 1970’s the Hare Karishnanas used this principal to raise millions of dollars. They would give passers-by a flower and requested no money. However this innate principal was so strong that even though the recipients didn’t really want the flower, they felt the need to repay the debt of kindness in some way and many donated money.

You probably have come across this principle, where someone has delivered a number of uninvited “first favours” over time and then you feel obliged to deal with them or do business with them.

Put simply, whatever you give out in life you tend to get back sooner or later. If you go through life looking for good in others and helping others get what they need, you may not always get an instant reward, but the principle of reciprocity will provide somewhere along the line.

  1. Social Proof

social-proofCialdini points out that we decide what is correct by noticing what other people think is correct. Innately we want to be like others and people are comforted knowing others are doing the same thing.

This principle is often used by sales people who give testimonials from people “just like you” who have bought and appreciated their product or service.

Most people feel at ease if they know others have already done what they intend to do. Celebrity product endorsements are an obvious application of this principle of Social Proof.

If you want someone to do something for you, be sure to let them see that other people are already doing it or are willing to do it. Show them that others like them believe in your product or service and are using it.

  1. Commitment and Consistency

Once people have made a choice or taken a stand, they are under both internal and external pressure to behave consistent with that commitment.

When people tell their friends they are going to give up smoking, or going lose weight, it motivates them to keep going with their decisions. We tend to feel pressured to behave consistent with the choices we have made. No one likes to admit they were wrong.

You can use this principal in negotiation by taking time to understand what motivates others and speak to them in their own language.

Try and elicit their values. Find out what they want, what they are trying to achieve. This will allow you to tap into their natural motivators, while also giving them what they want.

When you can get someone to commit verbally to an action, the chances go up sharply that they’ll actually do it.

  1. Friends

friends-blogWe all like doing business with people we know and like. And people tend to like others who appear to have similar opinions, personality traits, backgrounds or lifestyles. More people will say ‘yes’ to you if they like you, and the more similar to them you appear to be, the more likely they are to like you.

That’s why it’s important to build rapport with people you plan to negotiate with.

  1. Authority

Most of us were raised with a respect for authority, so we tend to place importance on information given to us by authority figures like doctors, policemen or professionals.

Sometimes people confuse the symbols of authority such as titles, appearance or possessions with the true substance. This means you can use this principle to your advantage during negotiations.

Look and act like an authority yourself – dress like the people who are already in the positions of authority that you seek. Or cite authoritative sources to support your ideas.

  1. Scarcity

The feeling that we may miss out on something special or unique will drive us to take action. Things always seem more valuable is there’s an element scarcity. Hard-to-get things are perceived as better than easy-to-get things.

Look at most advertising and you’ll see words like “limited offer”, “closes this weekend” or “limited edition collectors items.” How can you use this principle of scarcity in your negotations?

Professor Cialdini’s Six Weapons of Influence are incredibly powerful and can be combined in many ways. Use them whenever you approach people you want to influence and they will assist you in becoming a powerful communicator.

On their own these principals are ethic less. They can be used to create a win/win outcome for you and for those who you negotiate with. Or they can be used for dark purposes of influence. Obviously I would suggest you don’t use them this way.

 

Guest author:

Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog. 

 

 

 

Victor Niederhoffer – Lessons of making and losing a fortune

Click here.

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The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.