The short answer is, yes, the Orthodox Church requires confession of sin (it is one of the seven major sacraments, and so to fully participate in the sacramental life of the Church, confession is a part of this).
I too come from a Roman Catholic background, and had some psychological issues with confession - I would get unhealthily (not sure if that's a word) scared and anxious before confession or even contemplating it, and this would cause physical illness at times for me. What I learned when I came to the Orthodox Church (which the RCC teaches as well, but was lost on me in Sunday school growing up) is confession's sacramental purpose and function - to heal us from our spiritual sickness of sin, a sickness which we catch regularly, and make us prepared to receive Christ in the Holy Eucharist. Another thing that is very important to me is the fact that in the Orthodox Church a person generally has a single confessor (i.e. spiritual father - SF) who knows you well and can minister to you accordingly. The trust that is built between a person and his SF is huge and extremely comforting once it has been established. Furthermore, for me
, what has helped me with my fear is realizing that it is misplaced - what is beautiful about the sacrament of confession is that THERE IS NOTHING TO FEAR. We are promised that if we repent to the best of our ability (however we know how), before Christ and His witness (i.e. the priest), and we know we have done all we can to make a good confession, that we are forgiven. There is no anger, no embarrassment, no shame, nothing - simply forgiveness. It is astonishing to think about, and I still can't get my mind around it. Finally, another reason I could not fathom or understand confession when I was still RC was because I suffered from scrupulousness (how on earth can I remember and confess EVERY sin I commit?), which can drive a person mad if she is plagued with it. What I have found in the Orthodox Church is, because the priest knows you very well through frequent confession, he can then act accordingly if he sees that scrupulousness is something a person suffers from - I have heard of priests limiting the frequency a person goes to confession along these lines, since this is a sin that is just as bad as laziness or the like and needs to be remedied, and a priest knows how to do this.
I do not presume that any of these issues are the reasons confession takes a psychological toll on you - this has just been my own personal experience, which I am still working through. Feel free to PM me if you want to talk more.