Mentalism is an ensemble of techniques (including mnemotechnic, hypnosis, magic tricks, a knowledge of statistically likely phenomenons and, indeed, a trained intuition) used to produce incredible phenomenons (usually psychic phenomenons or an impressive mastery of the human mind) in an entertainment setting.
One point that is worth stressing is that it is neither all real (magic tricks are great to make things look better / add some punch and anyone telling you they don't use them is either lying or very ignorant) nor all fake (anyone telling you otherwise is, similarly, likely ignorant or a magician who did some telepathy-themed tricks and think that it is all there is to it, the human mind is an amazing toy).
If you want to be entertained by a world class mentalist, I highly recommend watching some Derren Brown shorts on YouTube (as someone else suggested).