Ah, I see. I thought it just meant prone to fantasy, waking nightmares, or just being over imaginative.

You are correct in saying that this does not apply to me. So if a person has magical thinking, it's more like they think they are invincible, and no consequences come to their actions. I knew a girl who was bipolar, and she said when she went through a manic phase, she thought she could spend as much as she wanted, and that money would magically be deposited into her account at the bank. She used the word magically too haha.

Thanks for clearing this up! :)