Thanks for the update, Chris! I have to say I think that's great progress for a fearful bird given that it's only been two weeks!
Great advice from CML on how to fade the target stick.

chrisp wrote:The only problem I am having right now is that as soon as he steps up and I hit the clicker he steps down right away (before getting the treat) because he knows he did what was required to get the treat. Also, if I try to bring him closer to me so I treat him whilst on the handheld perch he panics and flies away. I guess he does not trust a perch that moves. My intention was to just keep at it, hoping that repetition will boost his confidence. What do you guys think?
Whenever you train you have to break everything down into the tiniest steps, and then once a bird has a step down you want to push him to do just a little bit more in order to get a treat next time. In this case he's learned that you want him to step up onto the stick, and since he does that reliably now you can move on to the next step, which is getting him to stand there longer.
Slowly extend the time he has to stand on the perch before he gets a treat. When he steps onto the stick, instead of clicking immediately, wait maybe three seconds (use your judgment because you don't want him to give up, but you want to make him wait a bit longer before you click). Once you can reliably get him to stand there for three seconds, push for four, etc.
After he will stay on the perch for longer periods of time, he should be more comfortable with it so
then you can try to see if he'll take a treat while on the perch instead of stepping off first. I wouldn't try to move the perch at all until you've taught him to stand there for a while
and to eat his treat on the perch as well.
I hope this helps! Remember that for training to be fun and interesting the bird has to think it's going from one success to another so if you try something and he's not cooperating after several tries (failing), cue a trick that he knows really well so he can get a reward, and then try to get him to do the new behavior again.
chrisp wrote:As far as touch, again he is more cooperative when away from his usual spot. ... The only problem with this is that the next morning he will go back to his usual `beak only touching allowed` self.
This is typical of a bird. If they're in a comfortable setting they'll be themselves but if they're in a strange setting they really cling to anything that is familiar (in this case, you). My brown-headed parrot doesn't really like me very much but when I take him to the vet he will run over to me and try to stand on my shoulder or hand which is something he never, ever does.
That's actually a really great start if he lets you touch his beak. Some birds instantly take to petting and scratching but most birds don't because, unlike dogs (who are domesticated), they are wild animals who don't really have an innate sense of "being petted is pleasurable." It's something you have to teach, and you can use clicker training to teach him to tolerate touching, too. Once he learns to let you give him a head scratch you won't have to give him treats for it anymore because the scratch in and of itself is the reward.