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Rh is called autoerotism and is distinguished from the stage of object selection.

In the course of further study it proved to be practical and really necessary to insert a third stage between these two or, if one prefers, to divide the first stage of autoerotism into two. In this intermediary stage, the importance of which increases the more we investigate it, the sexual impulses which formerly were separate, have already formed into a unit and have also found an object; but this object is not external and foreign to the individual, but is his own ego, which is formed at this period. This new stage is called narcism, in view of the pathological fixation of this condition which may be observed later on. The individual acts as if he were in love with himself; for the purposes of our analysis the ego impulses and the libidinous wishes cannot yet be separated from each other.

Although this narcistic stage, in which the hitherto dissociated sexual impulses combine into a unity and take the ego as their object, cannot as yet be sharply differentiated, we can already surmise that the narcistic organization is never altogether given up again. To a certain extent man remains narcistic, even after he has found outer objects for his libido, and the objects upon which he bestows it represent, as it were, emanations of the libido which remain with his ego and