There was once upon a time a village and a cloud of disease was just entering into that village looking for people who might be interested in engaging it. A farmer noticed it and did not bother. Carried on with his work. The queen of the village came to know through some villagers about this cloud and began making preparations to prevent illness and she did extensive things and the cloud found the audience it was looking for! Now this story is just a fiction but I am using it more to drive an understanding of what does it mean to stop identifying with thoughts!
When your not noticing what thoughts go by your going to react by default. If you notice your thoughts and your feelings towards them you can break free from them. Your feelings about thoughts and situations is the identification that you need to break and the means is mindfulness, meditation etc.
Many people pretend they are fearless but deep inside they are scared. What sucks you into the mind story is your likes and dislikes! Unplug from both of them mindfully and the mind story has no power on you!
When you take the mind as true your giving it your power to project a reality called dream! Wake up! Its time to stop dreaming!