First person allows deeper insight into the protagonist's character. It allows the reader to identify more fully with the protagonist and to share her world quite intimately. So it suits a story focused on one character's personal journey. However, first person shuts out insights into other characters.
Third person allows a deeper exploration of the relationships between characters. We can see their misunderstandings and hear what they think about each other. We can create a more complex structure with various story threads running parallel.
There are technical tricks that may help you create more effective characters. My approach to characterization is not at all technical. I can't really analyze how I do it, but I am sure of one thing. To write convincing characters, you must possess the ability to think yourself into someone else's skin.
Each of my novels features a protagonist undertaking a difficult personal journey. On the way, each of these characters - mostly female - discovers something about herself and at the same time makes an impact on other people's lives.
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