Thanks a lot, Libbie. Your post was very helpful and I've already bookmarked the sites you suggested. I've been interested in cold reading since I saw a documentary about it on Discovery Channel 9 years ago.
Do you have any insights on why some people seem to genuinely believe they are psychics?
My feeling is that the people who actually DO really believe they are psychics (note: I think most people who profess paranormal abilities are consciously faking it) are not skeptical by nature and are very impressed by coincidence. These are people who do not require strong evidence, or sometimes any evidence at all, to believe a claim. They are, in a word, credulous.
Naive would be a less harsh way of putting it.
Just as people who believe that psychics are real will remember and inflate "hits" and forget or ignore "misses," a person who genuinely believes he or she has psychic powers really wants this to be true--either wants to be "special" in some way, or wants the phenomenon of psychic power to be a fact in this world. They want it so badly that they simply shut off their brain when it comes to recognizing "misses."
We all have intuition; we all have made guesses and had them turn out to be right. Sometimes we've had a weird feeling of mysticism before we guessed. This is a common experience. More times than we were right, though, we were wrong. A person who really believes he or she is a psychic just isn't recognizing those many times when he or she is wrong.
And it can't be stressed enough here that I believe the huge majority of people who claim to be psychic know they are not. Cold reading is
extraordinarily easy; so easy that I believe it's entirely possible to do it subconsciously, but it's a real cinch to do consciously. And doing it consciously allows you to refine your technique. If you're ever in Vegas, go see the Penn & Teller show. There is an amazing bit where Penn cold-reads several audience members in rapid succession, and the readings themselves are insanely fast. Lightning quick. I've seen the show enough to be positive that these are not plants in the audience, and the books used during the trick are just ordinary joke books, too. It's one of the most incredible feats of cold-reading you'll ever see, and it really drives home that "psychic powers" are just tricks that anybody can learn to do really, really well with sufficient practice.
Cold reading is even easy to do on the internet. I used to hang out on Yahoo Answers a lot and answer questions in the Religion & Spirituality section. At least once a day somebody would ask for a "psychic" to make "predictions" for them. They were sincere. I'd answer their question with a cold-reading and they would always express amazement that I had such awesome "powers" that worked even over the internet. Then I'd break it to them that it's just a really easy trick, I have no powers, and neither do any other psychics, so stop giving them money.