She does need psychological help, imo.
Okay,I'm not saying that you're wrong,per se(after all,only a divine entity could EMPIRICALLY determine someone's mental state),yet I'm not so sure that that's really the solution here.It could be argued that an experienced sports counsellor would be able to help Caro's self-belief during difficult matches,but let's look at a couple of other big issues.
Many posters say that losing doesn't bother Caroline much anymore--that she seeks comfort with her bf and isn't motivated by the prospect of failure as many champions are.Does psychological counselling help people make a non-essential activity a priority in their lives??We can truly say that tennis is non-essential for Caro because she has earned enough money to go back to school,earn a degree of her choice and pursue an alternate career.Even if she retires from tennis,she'll still get no worse than occasional endorsement offers with her beauty and charm to supplement her financial state...and we're not even counting the additional income she could get from sound investments.
Another issue posters mention is lack of confidence against top players;if that's true,is that really a psychological problem,or is it a logical self-assessment by Caro of her game??Let's say that Caro's buddy Malou went into a match vs. Vika feeling certain that she was going to lose.I wouldn't call that a psychological failing...more like Malou being honest with herself.Obviously,the disparity isn't nearly as extreme in Caro's case but,even in her run as #1,she didn't rack up lots of victories against in-form,elite players that would establish any strong basis for self-confidence.As I conceded above,an experienced sports counsellor,with past success in similar cases,might be able to help Caroline change towards a more constructive mindset;however,her current state might only be a result of feeling frustration and futility...and those aren't automatically psychological illnesses.
To me,if Caro could just find a middle ground of success with her forehand--being able to win points with it at times while not depending on it to blow others off the court--then she'd have a lot more self-confidence.....And she'd REALLY feel more confident if her serve weren't so awful sometimes
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