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Cold reading is a lot about saying things that feel like they are true, but could appeal to everybody.
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Cold reading is about more than saying things that could appeal to everybody.
Cold reading has a lot to do with perception. It doesn't matter for example whether a number like 3 months is right. If it were 5 months the success of the reader would probably be just as good. And the person would be just as impressed that you know about her baby boy being in the NICU.
And that person would tell afterwards his/her friends that the reader said 5 months.
For a cold reader it's certainly possible to pick up on self esteen issues and a lot of other things.
If you believe
Understanding Human Relationships
there is a no personal problem that a good cold reader shouldn't find because people project out their personal problems.
Cold reading is about trying to understand the other person better than the person understands her/himself and making guesses where the person doesn't notice if the reader is wrong.
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If that person then feels that the psychic is a real one, and starts accepting things that are not true, then he could have problems that was not there before he spoke to that psychic.
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If you talk to a real psychic who forcasts the future via tarot, that psychic could still give you bad advice on your life.
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If people start lying about how they helped other people, then there are too many people that are going to think that that one method works,
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What do you actually mean with the word lying?
Is the pharma company who sells a product that is placebo blind tested but works in a lot more complicated way than the person who designed the drug lying?
Does it matter whether the pharma company know that the way the drug works is that it doesn't work through the easy process that the drug designer intended (and that happens a lot)?
That would be similar to the cold reading who isn't aware that he is cold reading.
The focus should be on whether people are actually helped by the process.
Especially for those psychics who think they do more than just channeling, helping the person who gets the reading and accuratly forcasting things are two different issues.