Cold reading is a trick method, which many psychics and fortune tellers normally do. It's just the power of reading your mind off of how you behave, how you feel, and things like that.
Our textbook says cold reading works because we seek meaning in our worlds and often find it even when it's not there. So in many respects we're reading into the cold reading at least as much as the cold reader is reading into us. (pg.134)
I think fortune cookies can be the example of this. It usually works because we seek meaning from the line and often find it even when it's not really there. For instance, one time, I got a fortune cookie saying something like " You're going to meet a special person who will bring you a smile." I remember I kept thinking about it whenever I felt like he or she was the person who will bring me a smile after I got the line for awhile. It's stupid, but once I get it, it's stuck on my mind somehow, especially when I put a meaning to it
So I noticed that if we put a meaning to anything, we kind of fall into trap easily. Cold reading works perfectly for a fortune teller or someone like that when we came for an answer. I think it's because we tend to put a meaning into the word that the fortune teller( or fortune cookie) says and keep trying to figure it out. Then a small thing becomes bigger and eventually we may think it's the one that the fortune teller was talking about.
So don't get fooled by those intuitive people. They are just cold reading off of your behavior or your state of mind or something that they can feel and see.
Orson Welles talked about cold reading on a show.
here is a youtube video for that.