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Cheers everyone. I guess I'm just really frustrated at the moment. I just think it's far easier to say: 'go up and talk to people' than to actually do it. It's partly AA, but then again it's also social stigma IMO. Nobody does that. Sure it'd make you stand out, but you have the problem of approaching the person plus the stigma of other people around you seeing it as well and thinking 'weirdo!!!'. There seems to be very few times where it'd feel natural to talk to someone you don't know.
Actually approaching people and talking to them is as weird as you make it. I'm a fun social guy, why would it be weird to let my social juices flow and spread rainbows and unicorns among people? I truly think it isn't. the weirdness is just your perception. Change that and things will start looking bright. As for the stigma, do I care if a random stranger thinks I'm weird when I screw up? No, it is normal, I don't blame them for their reaction, a different time and setting I could've rocked their world, whatever it was, I get past it and move on. But I know I'm worth more than a random stranger's judgement.
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Confidence i'll agree is a massive factor. However, it's useless when you can't use it. I find it's fine if i'm actually talking to someone already. But you it's hard to give off a vibe of confidence, or something, if you're not actually talking to them. I mean, there's heaps of nerds/emos who are very confident. Same with overweight chicks. That doesn't mean they're attractive, it just comes across as weird or desperate.
It isn't about confidence, confidence is something you get after years and years of experience. It's about courage. Having the balls to stand up and doing something about the situation you're in. Let your loneliness fuel you. As hank moody once said "A night of awkwardness is better than a night of loneliness".
Everyone is confident to some extend. This mostly is situational confidence. Like a nerd would feel confident beating someone at a video game. Place them in a club situation they'll be insecure.
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Eye contact is another thing. I read about direct eye contact. I've tried it and it's glorious for looking at women, makes me feel good. However, again, no-one else does this. It looks pervy or like you're a stalker. I feel weird staring, even though I like the result. My non-game mate even told me to stop staring at people as it's noticeable and makes me look weird. On that note, smiles...they don't work. No-one smiles. You smile at someone, it shows you're happy. Doesn't mean anything else. It doesn't seem to be a greeting or anything.
Again, it's as weird as you make it. Try giving it a fun vibe. give it the 'knowing little smile'. Positivity is an highly attractive trait. Why would someone stick with a guy that's negative all the time and doesn't know what fun is. Sounds rather boring to me. On the other hand there is positivity, it's contagious, like smiling. You're offering people something, instead of wanting something from them. You like the result, then looking at other people should be fun. Stop listening to other people to tell you what you should like and shouldnt like. Also if you weren't allowed to look at things, why would we have eyes?
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I've tried all this, and I feel better internally knowing I have some sort of game plan but realistically I haven't had any results, and so i'm not sure how it would work without a significant something else I must be missing. I know I have weird, odd views compared to the norm here and I'm sure there's an underlying psychological problem there (dunno why though)

Yeah, it's hard. Thanks for your replies everyone!
You are not weird, there is no psychological problem, you are no special snowflake. That's bullshit your ego is feeding you to stop you from taking action. It would mean your ego would be gone. It doesn't like that.
I highly recommend you read eckhart tolle and start being positive for 10 days straight. No negative thoughts allowed. once one pops up in your head. accept it and move on. don't linger in it. otherwise you have to start over
-Jav