The 3rd step is conceptualizing emotion.
There is not a me which is scared, afraid, fearful, powerless, insecure, guilty, unworthy, jealous, hating or hateful, discouraged or discouraging, blamed or blaming, worried or worrying, doubtful or doubting, disappointed or disappointing, overwhelmed or overwhelming, frustrated or frustrating, irritated or irritating, impatient, pessimistic, bored, content, hopeful or hopeless, positive, expecting or expected, believing or believed, optimistic, enthusiastic or enthused, eager, happy, passionate, joyful, appreciative or appreciated, empowered or empowering, free, loving or loved.
This is an appearance of feeling.