Corinda's 13 steps to mentalism is a good start and a lot of what Derren does is based on these sorts of tricks.
If you want to cover the more psychological areas of mentalism I would recommend Banachek's Psychological Subtleties. This includes how to make psychological forces.
Derren has written a few books. The one that springs to mind is called "pure effect". It's not cheap, but it includes a section called "direct mind reading". I suspect anyone reading this thinking that Derren's stuff is mostly pscychological will be a bit disillusioned to find that in fact most of what he does is pure trickery. Nonetheless imo he's very good at it and a great showman.
Hope that helps.
In "An Evening of Wonders" Darren asks audience members to just purely imagine questions at him, while he is blindfolded. He then "picks up" on a question: Should I shave my ***tum? And answers yes.
The miricle is how he can possibly know what question you are thinking of. The only solution to this I can think of is either stooges or some tv editting, where they cut out some important part of the trick. If anyone knows differently however, tell me all. :p
I saw the show live, it happens exactly the way it does on Tv. I know how it was done.
I won't give away details just an anecdote, during the intervaul anyone who wanted to take part was asked to write down a question and place it in the basket. I was chatting to a woman outside in the foyer and she couldn't think of a question. So I said what about...
"what's my mother's maiden name?"
During the "think of a question segment this lady was picked out and the question she was thinking of was the question she'd wrote on her card.