One of the great things about being a magician is having the ability to fool another human being so badly that they actually question reality. Just think about it for a second, how powerful is that!
Broken down, this 'fooling' is accomplished by a combination of different skill sets and elements that when brought together paint a picture that isn't entirely true. As the magician you obviously have access to all of these bits of information, you know the sleights, the psychology, the misdirection; a spectator of course doesn't. A spectator has only the viewpoint that you allow them to see, a distorted image of the truth.
With the limited amount of information you allow the spectator to have, they have to paint their own picture of the reality before them. If you perform your magic correctly they should not have the vital information that will reveal the true situation. Just as in this video, it is only when the creator wants to show you the truth that your brain ceases to be fooled.
What we can learn from this:
There is a trap we can fall into though, if you begin to see everything from your angle it can then sometimes be hard to see the spectator's angle any more. It may seem obvious that you never put that coin in your hand, from your angle you may even be able to actually see that the coin was never put in the other hand. Yet you must sell the image that the coin really IS in your other hand. It may not fool you but don't forget that it will fool others who don't know the secrets. Try to remember back when you first saw magic and how it fooled you, I bet it was a simple magic trick that you can't believe you didn't figure out!
Remember what your spectator sees is totally different from the truth, sell the whole picture to them. Don't worry about what you can see, worry about what you are making them see.