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Relates to our internal emotional condition — a happy state, a sad state, a motivated state, etc. In NLP, state is understood as the combination of internal representations (what we picture, say to ourselves, and feel internally) and physiology (posture, breathing, muscle tension). NLP holds that the state we are in determines our results — access to resources, quality of thinking, and effectiveness of behavior all depend on state. State management is therefore a core competency in NLP practice.
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NLP Practitioner's Dictionary