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This is observation of people in varying situations, surroundings, difficulties and crisis and especially when consequence is involved. Thus the individual becomes the observer and Watcher of both of the self and of others, in order to gain the knowledge of alternative character types, and thus to have the greatest degree of choice, in changing existing or creating new personality traits and characteristics. There are two primary approaches. These are by observation only, or by interaction, in which the emphasis of the individual is as much upon taking part in the real events of the world as it is about observation.

Observation is the passive watching of individuals and groups within the framework of diverse contexts of circumstances and events. One observes others without actually interacting within situations being observed. Observation, specifically in reference to strangers without interaction, enjoys several advantages. It allows one to concentrate on observation without the many distractions that accompanies involvement. The observation of strangers allows for greater objectivity which may not be possible when dealing with known persons, for example where one may be prone to overlook specific character traits that may affect the relationship. However a certain subjectivity may also be helpful. Uninvolved observation allows the individual to create one's own identities and contexts for what is observed, that serve purposes of producing experience that would otherwise be impossible. For instance when traveling in foreign countries, in which the individual does not understand the language, the individual can create characters of one's own imagination, such that what is otherwise the observation of ordinary people talking about the weather, can be a theater of the mind, wherein the parties observed can represent any kind of characterization the individual will give. Because the individual can only have one physical presence, and thus experience is limited in terms of access to all the many and varied human realities, such as the revolutionary, fashion designer or ambassador, one can produce characters that may be useful in one's study of the problems inherent in the many personifications of life experience. However an overemphasis of this technique can produce unrealistic perspectives concerning the nature of human realities and should be used only to the best advantage of time and energy.

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