It goes where you aimed, and success and confidence do a positive feedback loop. I've finally gotten to the point I can now watch the arrow leave the bow and follow its flight through the sights. Like I said, this is a very widespread problem. I think most people experience it to some degree or another, although many probably don't realize that on their off days they are flirting with the beginnings of target panic. For me, although it once made me hang up my bow for a few years, it provides the mental challenge which makes the simple practice of the sport interesting.
Turbulence is a point of view.