We could say that self observing in reality is letting go of the points of view in which we have on the reality. Normal people always have a certain point of view (or ways of viewing and perceiving reality) that classical psychological could best define as “trances”. We could say that we are everyday in trance, or more simply that you are everyday in a way of viewing reality that is not reality. May be you are worried about something and you see just some elements of reality, or you are excited and in the same way you alter reality. Being present means observing yourself, feeling and seeing what you are in reality doing, becoming also aware that you are also a part of these reality you are observing that couldn’t exist in the way it is without you, becoming also aware that we have these way of viewing (or point of view) and letting them go the more possible, approaching a “no trance state” or a “no point of view state”.
How this could connect to magnetism? In fact when you get the most striking results is when you go in a particular state “without points of view” and “let things happen”. Somebody could call this “going to zero point state” or similarly, Mesmer would have called it “being simply in the Nature”. At this point something strange happens most of the time instantaneously. Problems many time get solved, healing happens. Why? May be also illness is a point of view, reality is not as we perceive and going to this zero point put us in contact with a more real world.