Don't worry. You passed Step 1 and that's the important part. That said, you know what you have to do in the next 12 months to really crank it out. Psych to my understanding is easy to get into, but as always with the lesser competitive programs, the question isn't if you'll get a spot as much as it is where do you want to be. I'd recommend the following:
1) Do well during 3rd year: which means helping out on the floor, trying to take the brunt of the job off the intern's shoulder, and read up on your patients. It also means studying for your clerkship exams and doing well. I would recommend that you get a Step 2 review book (like Secrets or Boards and Wards) and read the pertinent chapters the first day of your new clerkship, then follow it up with more extensive reading in some clerkship review book (Blueprints, HY, FA for example) and specific reading for your patients.
2) Start laying ground work for Step 2: which means seeing as many patients as possible and talk about the diagnostic criteria and work up for that patient as well as H&P. This will help you build intuition to do well on Step 2.
3) Look into where you would want to do away rotations and see whether or not that's where you would like to go.
Often times, good showing in clerkship grades, Step 2's early, and doing a couple of audition rotations can offset 1 bad day of testing.
