Great post, Gander. I too practise this technique, though it doesn't always work for me. The reason it can work is that it's the exact opposite of 'flogging the water' which is what I used to (and sometimes still do) find myself doing when the going gets tough.
The trick is, as you say, to 'give up', relax and still the unquiet mind. Then you start to cast and fish better.
There is a variation on this technique, also mentioned by Bruce which I call 'watch the birdie'. It happens spontaneously; the flies are cast, then I'm distracted by the wildlife. It might be a bird flying overhead or deer coming down to the water. As I gaze in wonder a splash and a mighty tug bring me back to fishing reality. This has happened to me a lot.
Of course I've tried cheating, ie pretending to see something and looking away, but this just doesn't work. It has to be a genuine distraction. The fish know the difference.
Have to go now; just noticed an ambulance outside and a couple of men in white coats walking up the garden path.....................

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Posted by Brownsville
Sounds a bit like Zen Buddhism to me,
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It is, actually. One of the many forms of meditation.
Now for my medication..............