The effect is quite simple. I ask the spectator if he has any idea as to the number of digits in the serial number on U.S. paper currency. Despite the answer, I inform him there are eight. I then remove a bill from my wallet, holding it so the spectator can see the serial number. The spectator is then invited to mentally choose any one of the eight digits.
When he has indicated that he's done so, I ask whether he wishes to change his mind. When the spectator has finally settled on one digit, I ask him to call it aloud. For example, let's say that the spectator has picked the numeral "5." I immediately turn the bill over and there typed across the top of the bill is the following: "I predict that you'll think of the number 5!"
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Today I'm going to teach you a fundamental Mentalism technique known as 'cold reading'. Cold reading is a technique employed by mentalists and charlatans and by charlatan I refer to psychics, mediums, fortune tellers or anyone that claims false abilities that is used to give the illusion that the person has some form of super natural power.