Grizabella
I like that you have option #2 as a place in between #1 (it's all in our heads) and #3 (magic).
I hope it's #3 because that would be the most satisfying and it does seem to be what is happening but I'm willing to accept it's much, much more likely that it's #1 and we're all at best Eye's-Shut readers.
I'll hedge and say #2, so again thank you for that option.
Try reading some books by Dean Radin, PhD and Amit Goswami, PhD. Also Dr. Larry Dossey. They're awesome.
I'm so going with #3. How does it work? Magic! (almost joking!)
I love my cards, and I always feel like I am tapping into something very old and unknown when I use them. It's a really cool feeling!
I've also had others do my cards and had the most accurate readings. As these people were strangers, and knew nothing about me, I can't say anything else but "wow!"
It's an amazing world, still so full of mysteries, among them the tarot.
"There are more things in heaven and earth, Horatio,
Than are dreamt of in your philosophy."
- Hamlet (1.5.167-8), Hamlet to Horatio
It's #2 and #3 for me. I began using Tarot at #1, progressed to #2 and now I'm solidly at #3 but with elements of #2.