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You are feeling approach anxiety.
This is something that is hard wired into every guy.
In caveman times if you approached the wrong girl the leader of your tribe might come and kill you. So your ancestors developed a survival mechanism called approach anxiety which is there to make you stop and think before approaching a girl. Also rejection from one girl usually means rejection from her friends, in caveman times her friends represented the rest of the available women in your tribe, so again aproach anxiety is there to make you stop and really think.
This means that this feeling is normal, it alos means it will never go away. You can become more desensitised to it but its always going to be there.
So how do you desensitise yourself? First get used to your location, if your going to be hanging out in the camus bars, go there a few times with your buddies just to get used to the location ( strange locations also bring on a survival anxiety ).
Next pick a few short openers which are simple non-sexual conversation starters and approach 10 women a day using these openers. Talk for a bit then move on. 2 weeks time thats easily 100 conversation openers under your belt.
Approach anxiety should now be as low as it will ever go. It will still be there but it will be reduced.
Thanks for the advice... the other thing that's bugging me and holding me back is that this campus that I'm talking about has a small community probably 400-600 people. It seems that anyone could know anyone and I think it's all in my head. Social Conditioning, Fear, Anxiety... some stuff, I know the cure was to approach, my mind wants to but my body won't move.