The term psychological time refers to something that has happened in the past, and the anticipation of things to come in the future. Clock time is the present time that you and I are experiencing.
We generally experience both psychological time as well as clock time, more of the former than the latter.
In psychological time, as we experience to live in the past, thoughts would reverberate around regret and the ifs and buts. The potential better life if some decisions had gone the other way will eat you alive.
When you start to think positively about your future, you tend to forget the foundation that you need to build to get there. The castle you build will be on air, and you will see it crumble every day until you realize that the future has become present and the things you dreamed of, does not exist.
Clock time on the other hand experiences reality. In clock time, you can make things happen rather than regretting and dreaming of a glorious future. Clock time gives you a sense of empowerment that lets you do things (good or bad) with your life. Stay in the present moment, experience and enjoy clock time to utilize the power of reality, and make things happen.
Your aim should be to minimize your psychological time and increase clock time. As humans with thought processes running in every single direction, it is impossible to put an end to psychological time. But, it is definitely plausible to recognize when you move into psychological time and bring your senses back to reality.